What are the consequences if a City Publications franchisee engages in conflicting business activities?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
As any breach by Franchisee of any of the covenants contained in this Section would result in irreparable injury to Franchisor, and as the damages arising out of any such breach would be difficult to ascertain, Franchisee agrees that, in addition to all other remedies provided by law or in equity, Franchisor, in the event of a breach or threatened breach of the covenants herein contained, shall be entitled to seek immediate equitable remedies including, but not limited to, restraining orders, preliminary and permanent injunctions in order to prevent Franchisee, its partners, members, officers, directors or employees from continuing to breach the covenants contained in this Section 17.
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, if a franchisee breaches the covenants regarding conflicting business activities, City Publications can seek immediate equitable remedies. These remedies include restraining orders, preliminary and permanent injunctions to prevent the franchisee from continuing the breach. This applies to the franchisee, their partners, members, officers, directors, or employees.
City Publications emphasizes that these restrictive covenants are essential to the Franchise Agreement. The company states that it would not have entered into the agreement without these protections. The franchisee acknowledges that these terms, including the restrictive covenants, are fair, reasonable, and necessary to protect City Publications and its franchise system.
Furthermore, the FDD states that any breach of these covenants would result in irreparable injury to City Publications. Because the damages arising from such a breach would be difficult to determine, City Publications is entitled to seek these equitable remedies in addition to any other remedies available by law or equity.