factual

Where must the restrictive covenants for a City Publications franchise be kept on file?

City_Publications Franchise · 2025 FDD

Answer from 2025 FDD Document

(KEEP THIS COPY FOR YOUR RECORDS)

Source: Item 23 — RECEIPT (FDD pages 39–129)

What This Means (2025 FDD)

Based on the 2025 City Publications Franchise Disclosure Document, Item 23 includes the instruction: "(KEEP THIS COPY FOR YOUR RECORDS)". This instruction indicates that franchisees should keep a copy of the FDD, which includes the franchise agreement and its exhibits, for their own records. The restrictive covenants are found within Section 17 of the franchise agreement, as referenced in Item 23.

This means that prospective City Publications franchisees should maintain their own copy of the FDD, including all exhibits and the franchise agreement, to ensure they have access to the terms and conditions, including the restrictive covenants. These covenants outline restrictions during the term of the agreement and after termination, which affect the franchisee's ability to engage in competitive business activities or solicit employees or customers.

It is standard practice in franchising for franchisees to retain a copy of the franchise agreement and related documents. This allows them to refer back to the terms of the agreement as needed and to understand their rights and obligations. Keeping these documents readily accessible is crucial for compliance and for resolving any disputes that may arise during the franchise term or after its termination.

Therefore, while City Publications as the franchisor will also maintain records, the onus is on the franchisee to keep their own copy of the FDD, including the franchise agreement with the restrictive covenants, for easy reference and to protect their interests.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.