What happens if a City Publications franchisee breaches a provision of the Franchise Agreement?
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 any covenant within Section 17 of the agreement, City Publications may seek immediate equitable remedies. These remedies can include restraining orders, preliminary injunctions, and permanent injunctions to prevent the franchisee from continuing the breach.
City Publications emphasizes that any breach by a franchisee would result in irreparable injury to the company, and the damages arising from such a breach would be difficult to determine. Because of this, the franchisee agrees that City Publications is entitled to seek these equitable remedies in addition to any other remedies provided by law or equity.
This means that City Publications can take swift legal action to prevent a franchisee from violating the terms of the agreement, particularly those related to competitive activities or solicitation of employees or customers. Prospective franchisees should understand that these restrictions are taken seriously and that City Publications will act to enforce them to protect its interests and the integrity of the franchise system.