After termination, is a former City Publications franchisee prohibited from soliciting business from customers of other City Publications franchisees?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
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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 within the Exclusive Territory granted to Franchisee, or within a radius of twenty-five (25) miles of any other Franchisor or franchisee-owned CITY PUBLICATIONS Business;
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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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- Solicit business from customers of Franchisee's former CITY PUBLICATIONS business or other Franchisor or franchisee-owned CITY PUBLICATIONS Businesses.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, after the termination of the Franchise Agreement, a franchisee is restricted from soliciting business from customers of other City Publications franchisees. Specifically, for a period of two years after the agreement ends, the franchisee cannot solicit business from customers of their former City Publications business or other franchisor or franchisee-owned City Publications businesses. This restriction applies regardless of the reason for termination.
This non-solicitation clause is in place to protect the City Publications franchise system and its franchisees from unfair competition by former franchisees who may try to leverage their knowledge and relationships gained during their time with the company. The restriction is in place for a period of two years, which is designed to give the remaining franchisees a reasonable amount of time to solidify their customer relationships and prevent disruption to their businesses.
The Franchise Disclosure Document emphasizes that these restrictive covenants are essential to the agreement, and City Publications would not enter into the agreement without them. Franchisees acknowledge that these restrictions are fair and reasonably required to protect City Publications and the franchise system. If a franchisee breaches this covenant, City Publications is entitled to seek immediate equitable remedies, including restraining orders and injunctions, in addition to any other legal remedies available.
Prospective franchisees should carefully consider these post-termination restrictions and how they might impact their future business activities if they decide to leave the City Publications system. It is important to understand the scope and duration of these restrictions before entering into a franchise agreement.