For City Publications, what specific agreements are spouses of franchisees required to sign?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Restriction During Term of Agreement
Franchisee covenants that, except as otherwise approved in writing by Franchisor, neither Franchisee nor any partner(s), officer(s), director(s), member(s), executives, professional staff or sales staff or the spouses of any of the foregoing shall, during the term hereof, either directly or indirectly, for itself or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other entity:
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- Own an interest in, manage, operate, be employed, in a sales or management capacity, by, or act as a consultant to any Competitive Business anywhere;
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- Initiate any action to hire, or attempt to hire for any other employer, any person who is employed by Franchisor or employed by any other franchisee of the CITY PUBLICATIONS System, or induce any such person to leave his employment with Franchisor or any other franchisee in order to work for any other employer, whether or not the person's employment with the business is pursuant to a written agreement or is at will; or
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- Divert business of customers of the Franchised Business or other Franchisor or franchisee-owned CITY PUBLICATIONS Businesses to any Competitive Business.
B. Restriction After Termination
Franchisee covenants that, except as otherwise approved in writing by Franchisor, neither Franchisee nor any partner(s), officer(s), director(s), member(s), executives, or professional staff or sales staff or their spouses of any of the foregoing shall for a period of two (2) years after the expiration or termination of this Agreement regardless of the cause, either directly or indirectly, for itself or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other entity:
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, spouses of franchisees are subject to certain restrictions and may be required to adhere to specific covenants, particularly regarding non-competition. During the term of the franchise agreement, neither the franchisee nor their spouse can own an interest in, manage, operate, or be employed by any competitive business. This restriction applies directly or indirectly, whether acting for themselves or in conjunction with another entity. Spouses are also prohibited from attempting to hire employees of City Publications or other franchisees, or from diverting business from existing City Publications businesses to a competitive business. These restrictions are in place to protect City Publications' market position and proprietary information.
After the termination or expiration of the franchise agreement, these restrictions continue for a period of two years. During this time, neither the franchisee nor their spouse can engage in activities that compete with City Publications, including owning or working for a competitive business, soliciting employees, or diverting customers. These post-termination covenants are designed to prevent former franchisees from using their knowledge and experience gained through City Publications to unfairly compete with the franchise system.
The FDD emphasizes that these restrictive covenants are essential to the franchise agreement, and City Publications would not enter into the agreement without them. Franchisees acknowledge that these terms, including the restrictive covenants, are fair, reasonable, and necessary to protect City Publications and the franchise system. In the event of a breach or threatened breach of these covenants, City Publications is entitled to seek immediate equitable remedies, including restraining orders and injunctions, to prevent the franchisee or their spouse from violating the agreement. Prospective franchisees should carefully review these restrictions and consider their implications before investing in a City Publications franchise.