What activities are City Publications franchisees prohibited from engaging in?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Own an interest in, manage, operate, be employed, in a sales or management capacity, by, or act as a consultant to any Competitive Business anywhere within the Exclusive Territory granted to Franchisee, or within a radius of twenty-five (25) miles of any other Franchisor or franchisee-owned CITY PUBLICATIONS Business;
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- Initiate any action to hire, or attempt to hire for any other employer, any person who is employed by Franchisor or employed by any other franchisee of the CITY PUBLICATIONS System, or induce any such person to leave his employment with Franchisor or any other franchisee in order to work for any other employer, whether or not the person's employment with the business is pursuant to a written agreement or is at will; or
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- Solicit business from customers of Franchisee's former CITY PUBLICATIONS business or other Franchisor or franchisee-owned CITY PUBLICATIONS Businesses.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 25–26)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees face several restrictions regarding competitive activities, employee solicitation, and customer interactions, primarily outlined in Section 17 of the franchise agreement.
Specifically, City Publications franchisees are prohibited from owning an interest in, managing, operating, being employed by, or acting as a consultant to any Competitive Business within their Exclusive Territory or within a 25-mile radius of any other City Publications franchise. This restriction prevents franchisees from directly competing with the City Publications system, ensuring they remain focused on growing their franchised business without divided loyalties or resources.
Additionally, franchisees are restricted from initiating any action to hire or attempt to hire any person employed by City Publications or any other franchisee within the system. They also cannot induce any such person to leave their employment to work for another employer. This measure aims to protect the stability of the City Publications network by preventing the poaching of employees and maintaining a consistent workforce across all franchise locations.
Finally, City Publications franchisees are prohibited from soliciting business from customers of their former City Publications business or other City Publications businesses within the franchise network. This restriction ensures that franchisees do not unfairly leverage their past association with the brand to gain an advantage over other franchisees or the franchisor after leaving the system. These restrictions are acknowledged by the franchisee as essential elements of the agreement, and City Publications retains the right to seek legal remedies, including injunctions, in the event of a breach or threatened breach of these covenants.