Can a City Publications franchisee hire an employee of another City Publications franchisee?
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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, a franchisee is restricted from hiring employees of other City Publications franchisees. During the term of the agreement, a City Publications franchisee cannot initiate any action to hire or attempt to hire any person employed by the franchisor or another franchisee of the City Publications system for any other employer. This restriction also includes inducing any such person to leave their employment with the franchisor or another franchisee to work for another employer, regardless of whether the employment is based on a written agreement or is at-will.
This restriction protects the City Publications franchise system by preventing franchisees from poaching employees from each other or from the franchisor. This helps maintain stability within the workforce and ensures that franchisees are not actively trying to undermine each other's businesses by recruiting their staff. The clause applies to the franchisee, their partners, officers, directors, members, executives, professional staff, and sales staff, as well as their spouses.
This restriction is in place during the term of the franchise agreement. If a franchisee violates this covenant, City Publications is entitled to seek immediate equitable remedies, including restraining orders, preliminary and permanent injunctions, to prevent the franchisee from continuing to breach the agreement. This highlights the importance City Publications places on maintaining the integrity of its franchise network and protecting its franchisees from employee poaching.