For how long after termination of employment is a Big Apple Bagels employee subject to the non-competition agreement?
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 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 the 2025 Big Apple Bagels FDD, a non-competition agreement applies to employees. Specifically, during the term of their employment and for 18 months following the termination of their employment, an employee is restricted from engaging in activities that could be considered unfair competition. This restriction applies regardless of the reason for termination.
The non-competition agreement prevents the employee from managing, operating, controlling, being employed by, participating in, or being connected with the ownership, management, control, or operation of any business similar to Big Apple Bagels within a 10-mile radius of any of the employer's Big Apple Bagels or My Favorite Muffin stores. The employee is also prohibited from soliciting, diverting, taking away, or interfering with the employer's business, customers, trade, or patronage during their employment and for 18 months after termination.
However, the agreement does not prevent the employee from being gainfully employed in a non-competing business anywhere or in a competing business outside the 10-mile radius. It also does not apply after the 18-month restricted time period. This clause aims to protect the employer's proprietary and confidential information while allowing the employee to pursue other employment opportunities that do not directly compete with the Big Apple Bagels business within the specified timeframe and area.
It is important to note that these non-competition covenants are designed to protect the Big Apple Bagels franchisee's investment and market position by preventing former employees from using acquired knowledge and relationships to unfairly compete. Prospective franchisees should be aware of these restrictions and ensure that their employees understand the terms of the non-competition agreement.