Are there any activities that City Publications is expressly forbidden from engaging in?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
C. Reasonableness of Restrictions
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.
D. Remedies
As any breach by Franchisee of any of the covenants contained in this Section would result in irreparable injury to Franchisor, and as the damages arising out of any such breach would be difficult to ascertain, Franchisee agrees that, in addition to all other remedies provided by law or in equity, Franchisor, in the event of a breach or threatened breach of the covenants herein contained, shall be entitled to seek immediate equitable remedies including, but not limited to, restraining orders, preliminary and permanent injunctions in order to prevent Franchisee, its partners, members, officers, directors or employees from continuing to breach the covenants contained in this Section 17.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees are restricted from certain activities to protect the franchisor's interests and maintain the integrity of the franchise system. Specifically, franchisees are prohibited from engaging in competitive business activities within their exclusive territory or near other City Publications franchises.
City Publications franchisees are not allowed to own an interest in, manage, operate, be employed by, or act as a consultant to any competitive business within their exclusive territory or within 25 miles of another City Publications franchise. This restriction prevents franchisees from directly competing with the City Publications system. Franchisees are also prohibited from soliciting employees of City Publications or other franchisees for other employment opportunities. This prevents the poaching of talent within the franchise network. Additionally, franchisees cannot solicit business from customers of their former City Publications business or other City Publications businesses.
These restrictions are acknowledged by the franchisee as essential to the agreement, and the franchisee agrees that the terms are fair and reasonably required for the protection of City Publications and the franchise system. City Publications has the right to seek immediate equitable remedies, including restraining orders and injunctions, in the event of a breach or threatened breach of these covenants, as damages would be difficult to ascertain and the breach would result in irreparable injury to the franchisor. These measures are in place to ensure franchisees remain committed to the City Publications system and do not exploit their knowledge or resources to the detriment of the brand.