What geographical limitation applies to the post-term noncompetition covenant for a City Publications franchise in Indiana?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 within the Exclusive Territory granted to Franchisee, or within a radius of twenty-five (25) miles of any other Franchisor or franchisee-owned CITY PUBLICATIONS Business;
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, after the termination of the franchise agreement, the franchisee is restricted from engaging in any Competitive Business within their Exclusive Territory or within a 25-mile radius of any other City Publications business. This restriction lasts for two years.
This means that a former City Publications franchisee in Indiana cannot own, manage, operate, or be employed by any business that offers direct mail advertising or similar services within their previously assigned territory. They are also restricted from working for a competitor near any other City Publications franchise location. The definition of "Competitive Business" is broad, including magazines, print ads, internet advertising, and search engine optimization services, among other things.
The non-compete aims to protect City Publications' market share and confidential information. The company considers these restrictions essential for entering into the franchise agreement. Franchisees acknowledge that these terms are fair and reasonably necessary for the protection of City Publications and its franchise system.
It is important for prospective franchisees to carefully consider the scope and duration of the non-compete agreement, as it could significantly limit their business opportunities after leaving the City Publications system. Franchisees should seek legal counsel to fully understand the implications of these restrictions in their specific circumstances and geographic area.