Is a City Publications franchisee prohibited from inducing an employee of the Franchisor to leave their employment?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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 City Publications' 2025 Franchise Disclosure Document, a franchisee is restricted from taking actions to hire or attempting to hire any person employed by City Publications or any other City Publications franchisee. This restriction also includes inducing any such person to leave their employment with City Publications or any other franchisee to work for another employer. This restriction applies whether the person's employment is pursuant to a written agreement or is at will.
This means that during the term of the franchise agreement, a City Publications franchisee cannot actively recruit or encourage employees of either the franchisor or other franchisees to leave their current positions. This is a fairly standard clause in franchise agreements, designed to protect the stability of the workforce within the franchise system.
The FDD also states that the franchisee acknowledges these restrictions are essential and reasonable for the protection of City Publications and the franchise system. If a franchisee breaches this covenant, City Publications is entitled to seek immediate equitable remedies, including restraining orders and injunctions, in addition to all other remedies provided by law or equity.