Can City Wide require franchisees to have their employees sign similar non-compete agreements?

According to City Wide's 2025 Franchise Disclosure Document, City Wide has the right to require franchisees to have their personnel sign similar non-compete agreements. Specifically, City Wide can mandate that franchisees enter into these agreements with personnel performing managerial or supervisory functions, as well as any personnel receiving training related to the City Wide system. These agreements must be in a form satisfactory to City Wide.

This requirement ensures that key employees who have access to City Wide's confidential information and operational methods are bound by non-compete obligations, protecting City Wide's interests. It also aligns the franchisee's staff with the franchisor's standards, maintaining consistency across the franchise system.

For a prospective franchisee, this means they must be prepared to implement and enforce non-compete agreements with certain employees as directed by City Wide. The franchisee should factor in the administrative and potential legal costs associated with these agreements. It is important for the franchisee to understand the specific terms and conditions that City Wide requires in these employee non-compete agreements to ensure compliance and avoid potential disputes.