Does the City Publications franchise agreement specify any required actions a franchisee must take regarding non-compete obligations after termination?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
agers and the spouses of each of the foregoing sign a like restrictive covenant which shall protect both Franchisor and Franchisee. Said covenants shall remain on file at the offices of Franchisee and are subject to audit or review as otherwise set forth herein.
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 the 2025 City Publications Franchise Disclosure Document, there are several actions a franchisee must take regarding non-compete obligations after termination or expiration of the franchise agreement. For a period of two years, the franchisee is restricted from engaging in any competitive business activities. Specifically, the franchisee cannot own, manage, operate, be employed by, or act as a consultant to any competitive business. This restriction applies to the franchisee, their partners, officers, directors, members, executives, professional staff, sales staff, and their spouses.
Additionally, the franchisee is prohibited from initiating any action to hire or attempt to hire any person employed by City Publications or any other City Publications franchisee. They also cannot induce any such person to leave their employment to work for another employer. Furthermore, the franchisee is barred from soliciting business from customers of their former City Publications business or other City Publications businesses.
Moreover, upon termination or expiration of the Franchise Agreement, all social media activities of the franchisee relating to City Publications must immediately cease. Failure to do so will result in a fine of $1000 per month until the issue is resolved. The franchisee must also relinquish the Franchised Business telephone number and any assumed names containing "CITY PUBLICATIONS".