Can a former Big Apple Bagels employee assist in diverting business from the employer?
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:
- 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, a former employee is restricted from assisting in diverting business from their former employer. Specifically, for a period of eighteen months following the termination of employment, the employee cannot directly or indirectly assist in soliciting, diverting, taking away, or interfering with the employer's business, customers, trade, or patronage. This restriction applies regardless of whether the employee acts on their own account or as part of another entity.
This non-compete clause is designed to protect the Big Apple Bagels franchisee's business interests by preventing former employees from using their knowledge and contacts gained during their employment to unfairly compete. The clause aims to prevent the unfair use of confidential information and maintain a competitive advantage for the franchisee.
However, the agreement also specifies that these restrictions should not prevent the employee from being gainfully employed in a non-competing business or in a competing business outside a 10-mile radius of any Big Apple Bagels or My Favorite Muffin store. This provides some flexibility for the former employee to seek other employment opportunities without being unduly restricted. Prospective franchisees should be aware of these restrictions as they may impact their ability to hire former employees of other similar businesses or what their own employees can do after leaving their employment.