Am I allowed to hire employees of City Publications or other City Publications franchisees for another employer?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
A. Restriction During Term of Agreement
Franchisee covenants that, except as otherwise approved in writing by Franchisor, neither Franchisee nor any partner(s), officer(s), director(s), member(s), executives, professional staff or sales staff or the spouses of any of the foregoing shall, during the term hereof, either directly or indirectly, for itself or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other entity:
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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;
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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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- Divert business of customers of the Franchised Business or other Franchisor or franchisee-owned CITY PUBLICATIONS Businesses to any Competitive Business.
B. Restriction After Termination
Franchisee covenants that, except as otherwise approved in writing by Franchisor, neither Franchisee nor any partner(s), officer(s), director(s), member(s), executives, or professional staff or sales staff or their spouses of any of the foregoing shall for a period of two (2) years after the expiration or termination of this Agreement regardless of the cause, either directly or indirectly, for itself or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other entity:
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, during the term of the franchise agreement, you are restricted from hiring or attempting to hire any person employed by City Publications or any other City Publications franchisee for another employer. This restriction also includes inducing any such person to leave their employment with City Publications or another franchisee to work for another employer, regardless of whether their employment is based on a written agreement or is at-will.
This restriction is in place to protect City Publications and its franchisees from losing valuable employees to other businesses. It prevents franchisees from actively poaching employees within the City Publications system for outside ventures. This type of restriction is common in franchising to maintain stability and prevent unfair competition among franchisees.
After the termination or expiration of the franchise agreement, this restriction remains in effect for a period of two years. This means that for two years after you are no longer a City Publications franchisee, you cannot hire or attempt to hire employees of City Publications or its franchisees for another employer, or induce them to leave their employment. This extended restriction is designed to further protect City Publications' interests even after the franchise relationship has ended.
These restrictions can impact your ability to hire employees if you operate other businesses or ventures outside of your City Publications franchise. It is important to consider these limitations and plan accordingly, especially if you anticipate needing to hire employees from within the City Publications network for other business endeavors.