What is the purpose of the non-competition agreement for employees of Big Apple Bagels franchisees?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Importance of Proprietary Information and Confidential Information. Employee acknowledges that: (a) Employee has learned and/or will learn Proprietary Information and Confidential Information during Employee's employment with Employer; (b) this Proprietary Information and Confidential Information is an important asset of Employer; and (c) it is important to keep the Proprietary Information and Confidential Information confidential in order for Employer to protect its business and to maintain its competitive advantage.
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- Agreement to Maintain Confidentiality. Employee agrees that both during and after the termination of Employee's employment with Employer, Employee will: (a) guard and protect the
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, the non-competition agreement for employees of Big Apple Bagels franchisees is designed to protect the franchisee's business and maintain its competitive advantage by keeping proprietary and confidential information secure. The agreement ensures that employees acknowledge the importance of the proprietary and confidential information they learn during their employment. This information is considered an important asset of the franchisee.
The agreement requires employees to maintain confidentiality both during and after their employment. This prevents them from using sensitive information gained at Big Apple Bagels to benefit a competitor or start a competing business. The confidential information includes customer data, purchasing habits, pricing, recipes, supplier information, sales volumes, costs, and other business-related details.
However, the enforceability of non-competition agreements can vary by state. For example, in Washington, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation).