Is the Big Apple Bagels Developer required to disclose innovations created by their employees?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Innovations. All ideas, concepts, techniques, and marketing, advertising or other materials relating to a bagel, muffin, and/or coffee store, whether or not protectable intellectual property and whether created by or for Developer or Developer's owners or employees, must be promptly disclosed to Franchisor and will be deemed to be Franchisor's sole and exclusive property, part of Franchisor's System, and works made-for-hire for Franchisor.
To the extent that any item does not qualify as a "work made-for-hire" for Franchisor, by this paragraph Developer assign ownership of that item, and all related rights to that item, to Franchisor and agree to take whatever action (including signing assignment or other documents) Franchisor requests to evidence Franchisor's ownership or to help Franchisor.
Developer agrees that Franchisor shall have the perpetual right to use and authorize other BAGELS Stores to use such ideas, concepts, methods and techniques without further consideration to Developer.
Developer shall fully and promptly disclose to Franchisor all ideas, concepts, methods and techniques relating to the development and/or operation of a bagel store conceived or developed by Developer and/or his employees during the term of this Agreement.
Developer agrees that Franchisor shall have the perpetual right to use and authorize other BAGELS Stores to use such ideas, concepts, methods and
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, a Big Apple Bagels Developer is required to disclose all innovations created by their employees that relate to a bagel, muffin, and/or coffee store. This includes ideas, concepts, techniques, and marketing, advertising, or other materials. This obligation applies whether or not the innovations are protectable intellectual property.
The FDD states that all such innovations, whether created by or for the Developer or the Developer's owners or employees, must be promptly disclosed to Big Apple Bagels. These innovations are deemed the sole and exclusive property of Big Apple Bagels, considered part of the Big Apple Bagels system, and classified as works made-for-hire for Big Apple Bagels. If any item does not legally qualify as a work made-for-hire, the Developer must assign ownership and all related rights to Big Apple Bagels and take any action necessary to evidence Big Apple Bagels' ownership.
Big Apple Bagels retains the perpetual right to use and authorize other Big Apple Bagels stores to use these innovations without providing further compensation to the Developer. The Developer is obligated to fully and promptly disclose all ideas, concepts, methods, and techniques relating to the development and/or operation of a bagel store conceived or developed by the Developer and/or their employees during the term of the agreement.
This requirement ensures that Big Apple Bagels maintains control over its brand and system standards, and can leverage innovations across the entire franchise network. For a prospective franchisee, this means that any creative ideas or improvements developed within their operation, even by their employees, become the property of Big Apple Bagels, potentially benefiting the entire franchise system but not necessarily the individual franchisee who originated the idea.