Can a Big Apple Bagels on-premises manager have a business relationship with any of Big Apple Bagels' competitors?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS**
A. FRANCHISE AGREEMENT
BAB requires you to supervise, but not personally manage, the Store. The Store must be directly supervised "on-premises" by a manager, who has completed BAB's training program. The on-premises manager may not have an interest or business relationship with any of BAB's business competitors. The manager is not required to have any amount of equity interest in the franchised business.
The manager must sign a separate written agreement with you incorporating nondisclosure and noncompetition clauses in a form satisfactory to us, including naming BAB as an intended third party beneficiary. An example of an agreement we currently consider satisfactory, including provisions to confirm our ownership of Ideas (as defined in Section 6.c. of the Franchise Agreement) is the Confidentiality and Non-Competition Agreement attached to the Franchise Disclosure Document as Exhibit E.
Source: Item 15 — OBLIGATION OF FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 66)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the on-premises manager of a Big Apple Bagels store is explicitly prohibited from having any interest or business relationship with any of Big Apple Bagels' business competitors. This requirement is part of the Franchise Agreement, emphasizing the franchisor's commitment to protecting its brand and market position. The manager's role is crucial for the daily operations and supervision of the store, making it essential that their loyalty and focus remain solely with Big Apple Bagels.
To ensure compliance, the on-premises manager must sign a separate written agreement that includes nondisclosure and noncompetition clauses. This agreement must be in a form satisfactory to Big Apple Bagels, which is further intended to protect the franchisor's interests and confidential information. Big Apple Bagels is named as an intended third-party beneficiary in this agreement, giving them the right to enforce these clauses directly against the manager. An example of an agreement that Big Apple Bagels considers satisfactory is attached to the Franchise Disclosure Document as Exhibit E, which includes provisions to confirm Big Apple Bagels' ownership of Ideas.
This requirement does not create an employee or joint-employee relationship between Big Apple Bagels and the franchisee's employees, nor does it constitute control by Big Apple Bagels over the employees' conditions of employment. This distinction is important to clarify that while Big Apple Bagels has an interest in ensuring the manager's commitment, the franchisee retains the employer responsibilities. This policy is designed to prevent conflicts of interest and maintain the integrity of the Big Apple Bagels brand by ensuring that those in key management positions are not simultaneously working to benefit competing businesses.