factual

Besides the franchisee, who else is required to sign a restrictive covenant for a City Publications franchise?

City_Publications Franchise · 2025 FDD

Answer from 2025 FDD Document

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, in addition to the franchisee, certain other parties associated with the franchisee's business may be subject to restrictive covenants. During the term of the agreement, these restrictions apply to the franchisee and any partner(s), officer(s), director(s), member(s), executives, professional staff, or sales staff, as well as the spouses of any of these individuals.

These individuals are restricted from owning an interest in, managing, operating, or being employed by any competitive business. They are also prohibited from attempting to hire employees of City Publications or its franchisees, or from diverting business from City Publications to a competitive business.

After the termination or expiration of the franchise agreement, these same restrictions apply for a period of two years. This means that for two years after the agreement ends, the franchisee and the specified related parties cannot engage in competitive activities, regardless of the reason for the termination. This broad scope ensures that City Publications' business interests are protected from unfair competition by those who have been closely associated with a franchise.

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.