When signing the City Publications agreement, what does the franchisee represent they have done?
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 the 2025 City Publications Franchise Disclosure Document, when signing the franchise agreement, the franchisee acknowledges that the restrictive covenants outlined in Section 17 of the agreement are essential. The franchisee agrees that these terms, including the restrictive covenants, are fair, reasonable, and necessary to protect City Publications and its franchise system. This acknowledgement is a critical component of the agreement, without which City Publications would not enter into the agreement with the franchisee.
This acknowledgement has significant implications for the franchisee. It means they understand and agree to be bound by the restrictions on their activities, both during the term of the agreement and after its termination. These restrictions may include limitations on operating or being involved with competitive businesses, soliciting employees or customers of City Publications, and other activities that could harm the franchise system. By agreeing to these terms, the franchisee is essentially promising not to engage in activities that could undermine City Publications' business.
The FDD also specifies the remedies available to City Publications in the event of a breach of these covenants. Given that any violation would cause irreparable harm and the damages would be difficult to quantify, City Publications is entitled to seek immediate equitable remedies. These remedies include restraining orders and preliminary or permanent injunctions to prevent the franchisee from continuing to breach the agreement. This highlights the seriousness with which City Publications views these restrictions and their commitment to enforcing them.
In essence, this clause ensures that franchisees fully understand and agree to the restrictions placed upon them, recognizing their importance to the integrity and protection of the City Publications franchise system. Prospective franchisees should carefully review Section 17 and understand the full scope of these restrictions before signing the agreement, as they will be legally bound by these terms.