Regarding the Confidentiality and Non-Competition Agreement for Big Apple Bagels franchisees and their employees, what action is the franchisee advised to take before using the agreement?

According to the 2025 Big Apple Bagels Franchise Disclosure Document, franchisees are advised to have the Confidentiality and Non-Competition Agreement reviewed by local counsel before using it with their employees. This is to ensure that the agreement complies with local laws. This recommendation is included as a note within the actual agreement form provided as an exhibit to the FDD.

This is a standard practice in franchising, as laws regarding non-compete agreements and confidentiality can vary significantly from state to state. By having local counsel review the agreement, the Big Apple Bagels franchisee can ensure that the agreement is enforceable in their specific jurisdiction and that it does not violate any local laws or regulations. This step helps protect both the franchisee and the franchisor by ensuring the agreement's legality and enforceability.

For a prospective Big Apple Bagels franchisee, this means budgeting for legal consultation fees to review the agreement. It also highlights the importance of understanding the legal landscape in their specific location. While Big Apple Bagels provides a standard agreement, it is the franchisee's responsibility to ensure it is legally sound for their business operations. Ignoring this step could lead to legal challenges or the unenforceability of the agreement, potentially harming the franchisee's business interests.