How is the 'Trade Area' defined for a B Bops franchise agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
nsed Marks"); and
WHEREAS, Developer desires to obtain certain rights to develop B-Bop's Restaurants at locations in the geographic area described in Appendix I attached hereto (such area to be hereinafter referred to as the "Trade Area"); and
WHEREAS, Company and Developer have mutually agreed upon the time schedule set forth in Appendix II attached hereto for the development of B-Bop's Restaurants in the Trade Area (such schedule to be hereinafter referred to as the "Development Schedule"); and
WHEREAS, the terms and conditions contained in this Agreement have been negotiated in reliance upon the unique financial and management ability of Developer to establish a multiple-unit franchise system.
NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
- GRANT AND ACCEPTANCE OF DEVELOPMENT RIGHTS. Company hereby grants to Developer, subject to the terms and conditions of this Agreement, the exclusive right to develop B-Bop's Restaurants in the Trade Area in compliance with the Development Schedule. Developer hereby agrees to develop, construct and open for business B-Bop's
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Restaurants within the Trade Area in accordance with the Development Schedule and with the terms and conditions of this Agreement. Developer further agrees to develop, own, operate, maintain and promote each B-Bop's Restaurant (hereinafter referred to as a "Unit") in accordance with the terms and conditions contained in the standard form of franchise agreement being utilized by Company to grant B-Bop's Restaurant franchises at the time of development of each such Unit (hereinafter referred to as a "Unit Franchise Agreement"), to be executed by Developer as specified in Section 6 hereof. Company agrees that it shall not establish, or license any third party to establish, a B-Bop's Restaurant in the Trade Area prior to the termination or expiration of this Agreement.
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- TERM.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, the 'Trade Area' for a B Bops restaurant is defined as the geographic area described in Appendix I of the Development Agreement. This area is where the developer (franchisee) is granted the exclusive right to develop B Bops restaurants, according to the development schedule outlined in Appendix II. B Bops agrees not to establish or license any third party to establish a B Bops restaurant in the Trade Area before the termination or expiration of the agreement with the developer.
The developer is restricted from engaging in any business substantially similar to a B Bops restaurant within the Trade Area during the agreement term. This restriction extends for two years after the agreement's termination or expiration, covering the Trade Area and a 20-mile radius around any operating or under-construction B Bops restaurant. A business is considered 'substantially similar' if it serves food items included in B Bops' standard menu.
The agreement emphasizes that the developer's rights and duties are personal, based on their character, skills, business ability, financial capacity, and attitude. Consequently, the developer cannot transfer the agreement or development rights without B Bops' prior written approval. This includes any controlling ownership interest in the developer entity. The Application Agreement also specifies that the applicant is applying for rights to either own and operate a single B Bops restaurant or develop multiple restaurants within the trade area described in Appendix I.
Prospective franchisees should carefully review Appendix I of the Development Agreement to fully understand the specific geographic boundaries of their Trade Area. They should also consider the implications of the non-compete clause, both during the franchise term and for the two years following termination, as this could significantly limit their business activities. Understanding these restrictions is crucial for assessing the potential and risks associated with a B Bops franchise.