factual

Am I allowed to induce an employee of City Publications or another City Publications franchisee to leave their employment?

City_Publications Franchise · 2025 FDD

Answer 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:

    1. 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;
    1. 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
    1. 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 inducing employees of City Publications or its franchisees to leave their employment. Specifically, you cannot initiate any action to hire or attempt to hire any person employed by City Publications or any other City Publications franchisee. This restriction applies regardless of whether the employee has a written agreement or is employed at will.

This restriction is in place to protect City Publications and its franchisees from losing valuable employees to competitors or other franchisees within the system. It aims to maintain stability and prevent the disruption that can occur when employees are recruited away. This type of restriction is common in franchising to protect the franchisor's and franchisees' investment in training and employee development.

After the termination of the franchise agreement, similar restrictions apply for a period of two years. This means that even after you are no longer a franchisee, you are still prohibited from soliciting or hiring employees of City Publications or its franchisees. This extended restriction is designed to prevent former franchisees from unfairly competing by leveraging their knowledge of the system and relationships with current employees.

Violation of these restrictions could result in legal action by City Publications, including potential lawsuits for damages and injunctive relief to prevent further breaches. Prospective franchisees should carefully consider these restrictions and their potential impact on their future business activities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.