When transferring a B Bops franchise, who must execute a nondisclosure and noncompetition agreement?

According to B Bops's 2025 Franchise Disclosure Document, when transferring a franchise, the franchisee (and such partners, shareholders or members thereof as B Bops may direct), or the individual partner, shareholder or member proposing to make such transfer, must execute a nondisclosure and noncompetition agreement in favor of B Bops. This agreement must contain the restrictions set forth in Sections 16 and 17 of the Franchise Agreement.

This requirement ensures that the outgoing franchisee, along with relevant partners, shareholders, or members, remains bound by confidentiality and non-competition obligations even after the transfer. This protects B Bops's proprietary information and market position by preventing the former franchisee from using their knowledge to compete against the brand or disclosing sensitive information to others.

The specific restrictions outlined in Sections 16 and 17 of the B Bops Franchise Agreement would detail the exact scope and duration of these obligations. A prospective franchisee should carefully review these sections to understand the full extent of the non-disclosure and non-competition requirements they and their partners/shareholders will be subject to when transferring the franchise in the future. This is a standard practice in franchising to maintain brand integrity and prevent unfair competition.