Does the restriction on hiring employees after termination from a City Publications franchise apply to at-will employees?

According to City Publications' 2025 Franchise Disclosure Document, the restrictions on hiring employees after termination apply to at-will employees. The franchise agreement specifies that franchisees cannot initiate any action to hire or attempt to hire any person employed by City Publications or another franchisee, regardless of whether the person's employment is based on a written agreement or is at will. This restriction applies both during the term of the agreement and for a period of two years after the agreement's expiration or termination.

This means that a City Publications franchisee is prohibited from hiring employees from the franchisor or other franchisees, even if those employees do not have employment contracts. This restriction is in place to protect the City Publications system by preventing franchisees from poaching talent and potentially disrupting the operations of other franchisees or the franchisor itself.

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 City Publications, potentially leading to legal remedies such as restraining orders and injunctions, in addition to other remedies provided by law or equity.

Prospective franchisees should be aware of these restrictions and their implications for staffing their City Publications business, both during the franchise term and after termination. It is important to understand the scope of these restrictions and how they might impact the ability to recruit and hire employees.