What is the consequence if a Big Apple Bagels employee breaches the agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Return of Materials. If Employee's relationship with Employer ends for any reason, Employee agrees to immediately return to Employer any of the Proprietary Information and Confidential Information in Employee's possession or under Employee's control.
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- Non-Competition. Employee agrees that in order to guard against the improper use of the Proprietary Information and Confidential Information and to avoid unfair competition with Employer, Employee will not:
- a. during the term of this Agreement and for a period of eighteen (18) months following the termination of Employee's employment with Employer, for whatever reason, within a radius of ten (10) miles of the location of any and all of Employer's Big Apple Bagels or My Favorite Muffin stores (or other name by which Employer is conducting business pursuant to its Franchise Agreement with BAB), which locations are listed on Exhibit A, directly or indirectly, manage, operate, control, be employed by, participate in or be connected in any manner with the ownership, management, control, or operation of any business similar to the type of business conducted by Employer as aforesaid.
- b. during the term of this Agreement, and for a period eighteen (18) months following the termination of Employee's employment with Employer, for whatever reason, either directly or indirectly, for Employee's own account, or as an employee, consultant, partner, joint venturer, owner, officer, director or stockholder of any person, firm, partnership, corporation, limited liability company, or any other entity or in any other capacity, in any way, assist in soliciting, diverting, taking away or interfering with any of Employer's business, customers, trade or patronage.
- c. The Employee agrees the restrictive covenants set forth above should not be construed to prevent Employee from being gainfully employed either in a non-competing business anywhere, or in a competing business that is outside the geographical limitation set forth in paragraph 5.a., or after the restricted time period set forth in paragraphs 5.a and 5.b.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, if an employee violates the agreement, several consequences may arise to protect the franchised business's confidential information and competitive edge.
The employee is bound by a non-competition agreement, which restricts them from engaging in any similar business within a 10-mile radius of any Big Apple Bagels or My Favorite Muffin store for 18 months after their employment ends. This restriction applies regardless of the reason for termination. The employee is also prohibited from soliciting or interfering with the employer's business, customers, or trade during and for 18 months after their employment.
Furthermore, the employee must return all proprietary and confidential information to the employer upon termination of their employment. These measures aim to prevent the misuse of sensitive information and maintain fair competition. However, these covenants do not prevent the employee from being gainfully employed in a non-competing business or in a competing business outside the geographical limitation.