Which City Wide personnel may be required to enter into non-compete covenants?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE will have the right to require Franchisee to enter into similar covenants with all of Franchisee's personnel performing managerial or supervisory functions and all personnel receiving training relating to the CITY WIDE System, in a form satisfactory to CITY WIDE.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide has the right to require franchisees to have their personnel enter into non-compete agreements. These personnel include anyone performing managerial or supervisory functions and anyone receiving training from City Wide. The non-compete agreements must be in a form satisfactory to City Wide.
This means that as a City Wide franchisee, you may need to ensure that certain employees sign non-compete agreements as a condition of their employment. This is to protect City Wide's interests and prevent employees from using the training and knowledge they gain to compete with the franchise after leaving their position.
The franchisee should be aware of the scope and terms of these non-compete agreements to ensure they are enforceable and compliant with local laws. It is also important to communicate these requirements clearly to employees during the hiring process. The franchisee should consult with legal counsel to ensure that the non-compete agreements are properly drafted and implemented.