What remedies are available to the employer in case of a breach of the agreement by a Big Apple Bagels employee?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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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.
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- Remedies. Employee agrees that in order to protect Employer's interests if there is a breach or threatened breach of this Agreement, Employer will be entitled to obtain, in addition to any other remedy, a temporary or permanent injunction and consent order for specific performance of this Agreement, without being required to furnish a bond or other security. If an injunction is issued, but is later vacated, Employee agrees to waive any claim for damages as a result of the issuance of the injunction. Employee agrees that if Employee has any claims or causes of action against Employer arising out of Employee's employment with Employer, such claims or causes of action will not constitute defenses to Employer's enforcement of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, if an employee breaches their agreement, the employer (Big Apple Bagels franchisee) has specific remedies available to protect their interests. These remedies include the right to seek a temporary or permanent injunction and a consent order for specific performance of the agreement. This means the franchisee can ask a court to order the employee to stop the breaching behavior and to fulfill their obligations under the agreement. Importantly, the franchisee is not required to provide a bond or other security to obtain such an injunction.
Furthermore, the employee agrees to waive any claims for damages if an injunction is issued but later vacated. This protects the franchisee from potential lawsuits by the employee if the injunction is overturned. The employee also agrees that any claims or causes of action they may have against the franchisee arising from their employment will not be a valid defense against the franchisee enforcing the agreement. This ensures that the employee cannot use unrelated grievances as a reason to avoid complying with the agreement.
In addition to injunctive relief, the employee agrees to indemnify and hold the franchisee harmless from any losses or expenses, including attorney's fees, that the franchisee incurs as a result of the employee's breach. This means the employee is responsible for covering the franchisee's financial losses resulting from the breach. The agreement also states that if any provision is deemed too restrictive, it will be modified to be enforceable to the greatest extent permitted by law, ensuring the agreement remains valid and effective as much as possible. BAB Systems, Inc., the franchisor, is also a third-party beneficiary of this agreement and has the right to enforce the provisions against the employee.