Does a Big Apple Bagels employee waive any claim for damages if an injunction is vacated?

According to the 2025 Big Apple Bagels Franchise Disclosure Document, a Big Apple Bagels employee agrees to waive any claim for damages if an injunction is issued but later vacated. This agreement is part of the broader terms related to protecting the employer's interests in the event of a breach or threatened breach of the Nondisclosure and Noncompetition Agreement. The franchisor, BAB Systems, Inc., is also a third party beneficiary of this agreement.

This means that if a Big Apple Bagels franchisee (the employer) seeks and obtains an injunction against an employee to prevent certain actions (such as disclosing confidential information or violating a non-compete clause), and that injunction is later overturned by a court, the employee cannot sue the franchisee for damages resulting from the period the injunction was in place. This provision is designed to protect the franchisee from potential financial liabilities in such situations.

This waiver is part of a larger agreement where the employee acknowledges the importance of the employer's proprietary and confidential information and agrees to maintain confidentiality both during and after their employment. The employee also agrees that any new ideas applicable to the employer's business will belong solely to BAB Systems, Inc. These stipulations are intended to safeguard the Big Apple Bagels system's trade secrets and competitive advantage.