After termination of the City Publications franchise agreement, what is the duration of the restriction preventing the franchisee from engaging in competitive activities?
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 City Publications' 2025 Franchise Disclosure Document, franchisees are subject to certain restrictions after the termination or expiration of their franchise agreement. Specifically, for a period of two years, the franchisee, along with their partners, officers, directors, members, executives, professional staff, sales staff, and their spouses, are restricted from engaging in competitive business activities.
These restrictions prevent them from owning an interest in, managing, operating, being employed by, or acting as a consultant to any Competitive Business. This restriction applies within the Exclusive Territory granted to the franchisee or within a 25-mile radius of any other City Publications business owned by the franchisor or another franchisee. Additionally, franchisees are prohibited from initiating any action to hire or attempting to hire any person employed by City Publications or any other City Publications franchisee. They are also barred from soliciting business from customers of their former City Publications business or other City Publications businesses owned by the franchisor or other franchisees.
These non-compete clauses are acknowledged by City Publications as essential to the franchise agreement, ensuring the protection of the franchisor and the franchise system. Franchisees agree that these terms, including the restrictive covenants, are fair, reasonable, and necessary for this protection. Breaching these covenants could result in irreparable injury to City Publications, entitling them to seek equitable remedies such as restraining orders and injunctions, in addition to other legal remedies.