What section of the City Publications agreement contains the non-competition agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the restrictive covenants contained in Section 17 are essential elements of this Agreement
and that without their inclusion, Franchisor would not have entered into this Agreement. Franchisee agrees that each of the terms set forth herein, including the restrictive covenants, is fair and reasonable, and are reasonably required for the protection of Franchisor and the Franchise System.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the non-competition agreements are located in Section 17 of the franchise agreement. The document confirms that these restrictions are considered essential for City Publications to enter into the agreement.
During the term of the agreement, franchisees are restricted from owning interests in, managing, operating, or being employed by any competitive business. They are also prohibited from hiring or attempting to hire employees of City Publications or its other franchisees. Additionally, franchisees cannot divert business from existing City Publications customers to a competitive business.
After the termination or expiration of the franchise agreement, these restrictions extend for a period of two years. During this time, franchisees are still prohibited from engaging in competitive business activities. These non-compete clauses are designed to protect City Publications' market position and confidential information.