Does the restriction on hiring City Publications employees apply if the employee's employment is at-will?

According to City Publications's 2025 Franchise Disclosure Document, the restriction on hiring employees of City Publications or its franchisees applies regardless of whether the employee's employment is at-will or pursuant to a written agreement. This means that a franchisee is prohibited from attempting to hire or inducing any employee of the franchisor or another franchisee to leave their employment, irrespective of the terms of their employment contract.

This restriction is in place both during the term of the franchise agreement and, in a slightly different form, after termination. During the agreement, franchisees are prohibited from hiring or attempting to hire any person employed by City Publications or another franchisee. After termination, similar restrictions apply, preventing franchisees from soliciting business from customers of their former City Publications business or other franchised locations.

The FDD emphasizes that these restrictive covenants are essential to the agreement and are considered fair and reasonable for the protection of City Publications and its franchise system. Breaching these covenants could result in irreparable injury to the franchisor, leading to legal remedies such as restraining orders and injunctions.

For a prospective franchisee, this means they must be very careful about recruitment practices, ensuring they do not target or solicit employees from within the City Publications network, even if those employees are not under a formal contract. This restriction is designed to protect the stability of the workforce within the City Publications system and prevent franchisees from poaching talent from each other or the franchisor itself.