What is the duration of the non-solicitation clause for Big Apple Bagels employees after termination?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Non-Competition. 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, an employee is subject to a non-solicitation clause for a period of eighteen (18) months following the termination of their employment. This restriction prevents the employee from directly or indirectly soliciting, diverting, taking away, or interfering with any of the Employer's business, customers, trade, or patronage. This applies whether the employee acts on their own account or as part of another entity in any capacity.
This non-solicitation agreement is designed to protect Big Apple Bagels' business interests by preventing former employees from leveraging their knowledge and contacts gained during their employment to unfairly compete with the business. The clause ensures that departing employees cannot actively poach customers or disrupt the established business relationships of the Big Apple Bagels franchise.
However, the agreement specifies that the restrictive covenants should not prevent the employee from being gainfully employed in a non-competing business anywhere or in a competing business outside the geographical limitation. This ensures that the employee can still pursue other employment opportunities, provided they do not directly compete with the Big Apple Bagels franchise within the restricted area and time frame. This balance aims to protect the franchise's interests while allowing the former employee to continue their career.
Prospective franchisees should be aware of these restrictions, as they impact the hiring and management of employees. It is important to understand the scope and limitations of the non-solicitation agreement to ensure compliance and avoid potential legal issues. Franchisees should also consult with legal counsel to fully understand their obligations and rights under the agreement.