What is considered a 'competing business' for the purposes of the Big Apple Bagels employee non-compete agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Big Apple Bagels' 2025 Franchise Disclosure Document, a competing business, in the context of an employee non-compete agreement, is defined as any business similar to the type operated by the Big Apple Bagels franchisee. Specifically, an employee is restricted from managing, operating, controlling, being employed by, participating in, or being connected with the ownership, management, control, or operation of such a business. This restriction applies both during the term of their employment and for 18 months after termination.
The non-compete agreement extends to a 10-mile radius around any Big Apple Bagels or My Favorite Muffin store owned by the employer. Furthermore, the employee is prohibited from soliciting, diverting, or interfering with the employer's business, customers, trade, or patronage during their employment and for 18 months post-termination. However, the agreement clarifies that it should not prevent the employee from being employed in a non-competing business or in a competing business outside the specified geographical limitation or after the restricted time period.
This non-compete clause aims to protect Big Apple Bagels' proprietary and confidential information and prevent unfair competition. For a prospective franchisee, this means that their employees will be subject to these restrictions, which could help maintain the stability of their workforce and protect their business interests. However, it's important to note the limitations and exceptions, ensuring that the restrictions are reasonable and do not unduly limit an employee's ability to find other employment. Franchisees should be aware of these terms and ensure they comply with applicable laws regarding non-compete agreements, as enforceability can vary by jurisdiction.