What is the duration of the non-competition agreement for employees after they leave a Big Apple Bagels franchisee?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
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- A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provi
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
The 2025 Big Apple Bagels Franchise Disclosure Document (FDD) does not specify the duration of a non-competition agreement for employees after they leave a Big Apple Bagels franchisee, except in the state of Washington.
However, the FDD does include information regarding non-competition agreements in the state of Washington. According to the FDD, pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's requirements are met.
Because the FDD does not specify the duration of a non-competition agreement for employees of Big Apple Bagels franchisees, prospective franchisees should inquire directly with the franchisor about the terms and conditions of any non-competition agreements applicable to their employees. This information is crucial for understanding the restrictions placed on former employees and ensuring compliance with relevant laws.