What is the trigger for City Publications to take remedial or corrective actions?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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, City Publications may seek immediate equitable remedies if a franchisee breaches covenants outlined in Section 17 of the franchise agreement. These breaches would result in irreparable injury to City Publications, and the damages would be difficult to ascertain.
Specifically, City Publications is entitled to seek restraining orders, preliminary and permanent injunctions to prevent a franchisee, its partners, members, officers, directors, or employees from continuing to breach the covenants. This indicates that City Publications prioritizes protecting its interests and the franchise system through legal means when a franchisee violates the terms of the agreement.
The covenants in Section 17 include restrictions on engaging in competitive businesses, soliciting employees, and soliciting customers. These restrictions are in place to protect City Publications' market position and confidential information. The franchisee acknowledges that these restrictions are essential and reasonable for the protection of City Publications and the franchise system.
This means that a City Publications franchisee must be very careful to avoid any actions that could be interpreted as a breach of these covenants, as City Publications is prepared to take swift legal action to enforce them. Prospective franchisees should carefully review Section 17 of the franchise agreement and seek legal counsel to fully understand their obligations and the potential consequences of non-compliance.