Is an employee allowed to use Proprietary Information of Big Apple Bagels for their own benefit?

According to the 2025 Big Apple Bagels FDD, an employee is explicitly prohibited from using Proprietary Information for their own benefit, both during and after their employment. The FDD emphasizes the importance of maintaining the confidentiality of Proprietary Information to protect the employer's business and competitive advantage. This obligation extends beyond the termination of employment. The employee acknowledges that the Proprietary Information is an important asset of the employer.

The agreement specifies that the employee must guard and protect the Proprietary Information and Confidential Information both during and after their employment. This includes an agreement not to use the Proprietary Information in any other business or capacity. There are exceptions for information that the employee can demonstrate they knew before their employment or that has become public knowledge through disclosure by others.

To further protect against the misuse of Proprietary Information and prevent unfair competition, the employee agrees to a non-competition clause. This clause restricts the employee, for a period of eighteen months following termination of employment and within a ten-mile radius of any Big Apple Bagels or My Favorite Muffin store, from being involved with any similar business. This restriction includes managing, operating, controlling, or being employed by a competing business. The employee is also prohibited from soliciting, diverting, or interfering with the employer's business, customers, trade, or patronage during this period.

These measures are in place to ensure that the Proprietary Information of Big Apple Bagels is protected and that employees do not use this information to unfairly compete with the franchise. Prospective franchisees should understand these restrictions and ensure that their employees are aware of and comply with these obligations.