What is the employee agreeing to in the non-competition agreement with a Big Apple Bagels franchisee?
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 ei
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, an employee of a Big Apple Bagels franchisee agrees to certain non-competition restrictions to protect the franchisee's business interests. Specifically, the employee agrees not to engage in any business similar to Big Apple Bagels within a defined geographic area and time frame.
The employee is restricted from managing, operating, controlling, being employed by, participating in, or being connected with the ownership, management, control, or operation of a similar business. This restriction applies during their employment and for 18 months after termination. The geographic scope of this restriction extends to a 10-mile radius of any of the franchisee's Big Apple Bagels or My Favorite Muffin stores. This agreement aims to prevent the employee from using the franchisee's proprietary and confidential information to unfairly compete against them.
However, in the state of Washington, this non-competition covenant is void and unenforceable against an employee if the employee's earnings from the party seeking enforcement, when annualized, do not exceed $100,000 per year (this amount is subject to annual adjustments for inflation). This means that if an employee of a Big Apple Bagels franchisee in Washington earns less than the specified amount, the non-competition agreement may not be legally binding. Prospective franchisees should be aware of these limitations and consult with legal counsel to ensure compliance with local laws regarding non-competition agreements.