What is the employee prohibited from doing with the Proprietary and Confidential Information of Big Apple Bagels?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Employee agrees that both during and after the termination of Employee's employment with Employer, Employee will: (a) guard and protect the
Proprietary Information and Confidential Information so it does not fall into the hands of Employer's competitors or potential competitors; (b) refrain from using the Proprietary Information or Confidential Information for Employee's own benefit or that of any other person or entity; (c) refrain from disclosing the Proprietary Information and Confidential Information to any other person or entity, unless authorized by Employer. Employee agrees that "use" and "disclosure" of the Proprietary Information and Confidential Information include use and disclosure through memorization, and not only through use or disclosure of written material.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, an employee is prohibited from using or disclosing Proprietary and Confidential Information. This restriction applies both during and after the termination of their employment. Specifically, the employee must safeguard this information to prevent it from falling into the hands of competitors. They are also barred from using it for their own benefit or the benefit of any other person or entity without authorization from the employer. This includes refraining from disclosing the information to any unauthorized individuals or entities. The terms "use" and "disclosure" encompass not only written material but also information retained through memorization.
This clause is designed to protect Big Apple Bagels' competitive advantage by ensuring that sensitive business information remains confidential. Proprietary Information includes techniques, systems, procedures, standards, manuals, data, specifications, and other materials of BAB Systems, Inc. Confidential Information includes customer identities, purchasing habits, pricing, recipes, supplier information, sales volumes, costs, and expenses.
For a prospective Big Apple Bagels franchisee, this means that all employees will be legally bound to protect the confidentiality of the franchise's operational and business secrets. Franchisees must ensure their employees understand and adhere to these restrictions, as any breach could have significant legal and financial repercussions for both the employee and the franchisee. The franchisee should have employees sign agreements acknowledging these restrictions.
This type of confidentiality agreement is standard practice in the franchise industry, particularly for food-related franchises where recipes and operational methods are key differentiators. Franchisees should consult with legal counsel to ensure their employee agreements are compliant with local laws and adequately protect their business interests.