factual

What is the duration of the non-competition agreement following the termination of employment with a Big Apple Bagels franchisee?

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)

The 2025 Big Apple Bagels Franchise Disclosure Document (FDD) does not explicitly state the duration of a non-competition agreement for employees after termination of employment with a Big Apple Bagels franchisee. However, the FDD does include a sample agreement that the franchisee (as the employer) may use with its employees.

The sample agreement discusses the importance of protecting the Big Apple Bagels franchisee's proprietary and confidential information, and it requires the employee to maintain confidentiality both during and after their employment. While it mandates confidentiality, the provided excerpts do not specify a time period or geographical scope for non-competition after employment ends.

A prospective franchisee should inquire with Big Apple Bagels about the specific terms of the non-competition agreement that franchisees are required to use with their employees. This would include the duration, geographical limitations, and the scope of activities restricted by the agreement to fully understand the obligations and restrictions placed on former employees.

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.