factual

What is the definition of 'Agreement' in the context of the Big Apple Bagels employee agreement?

Big_Apple_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

RECITALS:

  • A. Employer is a Franchisee of BAB Systems, Inc. ("BAB"), an Illinois corporation, pursuant to a Franchise Agreement ("Franchise Agreement") with BAB. BAB is in the business of operating a franchise distribution system related to owning and operating certain Stores under the name "Big Apple Bagels" or "My Favorite Muffin" that offer and sell "Big Apple Bagels" branded bagels and cream cheese spreads, "My Favorite Muffin" branded muffins, and "Brewster's" branded coffee for on premises consumption and retail and (except for Brewster's coffee) wholesale distribution Employer operates a "Big Apple Bagels" Store pursuant to the Franchise Agreement. In connection with Employer's business, Employer will be using various techniques, systems, procedures, standards, manuals, data, specifications, and other materials, all of which are considered the proprietary and confidential information ("Proprietary Information") of BAB.
  • B. Employer will also develop or acquire the right to the use of important information relating to the identity of its customers, the nature and amount of their purchases, pricing practices, receipts, ingredients, the identity of suppliers, sales volumes, costs, expenses and other information. All of the above methods, materials and information are referred to as "Confidential Information."
  • C. During the course of Employee's employment with Employer, Employee will have access and learn from Employer much or all of the Proprietary Information and the Confidential Information.
  • D. In light of the above facts and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
    1. Importance of Proprietary Information and Confidential Information. Employee acknowledges that: (a) Employee has learned and/or will learn Proprietary Information and Confidential Information during Employee's employment with Employer; (b) this Proprietary Information and Confidential Information is an important asset of Employer; and (c) it is important to keep the Proprietary Information and Confidential Information confidential in order for Employer to protect its business and to maintain its competitive advantage.
    1. Agreement to Maintain Confidentiality. Employee agrees that both during and after the termination of Employee's employment with Employer, Employee will: (a) guard and protect the

Source: Item 23 — RECEIPTS (FDD pages 87–319)

What This Means (2025 FDD)

Based on the 2025 Big Apple Bagels Franchise Disclosure Document, the term "Agreement" in the context of the employee agreement refers to the contractual understanding between the Big Apple Bagels franchisee (as the employer) and their employee. This agreement outlines the terms and conditions of employment, particularly concerning the protection of proprietary and confidential information. The employee acknowledges that they will have access to sensitive information crucial to Big Apple Bagels' business operations and competitive advantage.

The agreement emphasizes the importance of maintaining confidentiality both during and after the employee's tenure. It includes clauses that prevent the employee from disclosing or misusing proprietary information, ensuring that the franchisee's business secrets and customer data remain protected. This is a standard practice in franchising to safeguard brand integrity and operational methods.

Furthermore, the agreement typically contains non-compete provisions that restrict the employee from working for a competing business within a specified radius and time frame after leaving Big Apple Bagels. These restrictions are designed to prevent unfair competition and protect the franchisee's investment in training and business development. The specifics of these non-compete terms, including the duration and geographical scope, are detailed within the agreement and may vary based on local laws and regulations. Franchisees should ensure that their employee agreements are compliant with applicable state laws regarding non-compete clauses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.