Upon termination of the B Bops franchise agreement, is the franchisee still allowed to operate other B Bops restaurants under separate agreements?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of this Agreement, or upon expiration of the Term of this Agreement without renewal, Franchisee agrees as follows:
- A.
Franchisee shall no longer be entitled to operate a B-Bop's Restaurant on the Franchise Premises or at any other location, nor in any other manner at any location whatsoever utilize all or any portion of the Licensed System (including, but not limited to, the proprietary recipes) or any of the Licensed Marks, provided that termination or expiration of this Agreement shall not affect the right of Franchisee to operate any other B-Bop's Restaurant in accordance with the terms of a franchise agreement between the parties;
- B.
Franchisee shall cease to hold itself out to the public as being a B-Bop's Restaurant and shall avoid any other conduct which would suggest or indicate any relationship between Company and Franchisee, except to the extent permitted by paragraph A above;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a franchisee's ability to operate other B Bops restaurants after termination depends on whether those restaurants are under separate franchise agreements. Specifically, the termination of one franchise agreement does not automatically affect the franchisee's right to operate other B Bops restaurants if those restaurants are governed by their own, distinct franchise agreements with B Bops.
However, upon termination of the franchise agreement, the franchisee is no longer entitled to operate a B Bops restaurant on the specific franchise premises or any other location using the Licensed System or Licensed Marks. The franchisee must also cease representing themselves as a B Bops restaurant, except as permitted by the clause allowing operation under other franchise agreements.
This clause protects a B Bops franchisee who has multiple locations, ensuring that the termination of one agreement does not jeopardize their entire business. However, it's crucial for franchisees to maintain compliance with all franchise agreements to avoid potential issues. Franchisees should carefully review all agreements and seek legal counsel to fully understand their rights and obligations.