What are 'New Ideas' in the context of a Big Apple Bagels employee's discoveries?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Discoveries, Inventions and Improvements.
Employee agrees that because of Employee's employment with Employer, Employee may from time to time develop discoveries, inventions, improvements and ideas (collectively called "New Ideas") relating to Employer's business.
Employee agrees to disclose Employee's New Ideas to Employer and agrees that any of those New Ideas which are applicable to Employer's business will belong solely to BAB Systems, Inc.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, 'New Ideas' encompass any discoveries, inventions, improvements, and ideas that an employee develops relating to the Big Apple Bagels business due to their employment.
The agreement stipulates that employees must disclose these 'New Ideas' to their employer, and any such ideas applicable to the Big Apple Bagels business will belong solely to BAB Systems, Inc., the franchisor. This means that if an employee comes up with a new bagel recipe, a more efficient way to manage inventory, or a marketing strategy, those ideas become the property of the franchisor, not the employee or the franchisee.
This clause is designed to protect the Big Apple Bagels system and ensure that any innovations or improvements are standardized across the franchise network. For a franchisee, this highlights the importance of clearly communicating this policy to their employees and ensuring compliance. It also means that franchisees benefit from the collective creativity of the entire franchise system, as any 'New Ideas' can be implemented across all locations.
It is important for prospective franchisees to understand that while they benefit from the innovations of others in the system, they also relinquish ownership of any ideas developed by their own employees. This is a common practice in franchising, as it helps maintain consistency and protect the brand's intellectual property.