Non Compete Agreement

Anyone familiar with these or have an example of one. Renting a place from a guy who has a catering and delivery place in the back, and trying to make sure he doesnt compete with my type of food. Any help would be appreciated.

I can tell you from experience that these are tricky and every state has different legal standards. If you’re concerned about the other guy then I would contact a lawyer, spend $500, and get a good short and sweet one. You could also put a line in the lease that says something like “so and so agrees not to sell pizza or similar products from this location during the period of the lease”. Then you could at least break the lease if he started it.

i think those agreement dont hold water
you cant rule over another person how the make a living
at least thats what i ve been told
just my two cents :wink:

It happens all the time in sales, a person leaves one company to work for a competitor. I’ve seen and heard of plenty of lawsuits.

To say they don’t work is not accurate. They work if 1)properly drafted and 2) enforced by the party seeking the agreement.

See a lawyer, experienced in such things.

“similar products” is something I’d try very hard to clarify. A lot of pizza joints sell subs. A sub is not “similar products” to pizza. A grinder, po boy, etc would be similar to a sub. Also, you need defined damages included. Breaking the lease is not a great option since you’re leaving the customers to the other person and just moving out.

Why are you afraid of the competition?..Just focus on your product and service do not worry about what the neighbours are doing…RCS…

We used these for every lease we ever negotiated with a landlord/ leasing agent. I can’t imagine anyone renting space without one.

It’s more like locking your doors versus not locking your doors. It slow the crooked people down, but it won’t stop them.

Everything is arguable in court if someone’s willing to pay lawyer’s fees.

Covenant not to compete;
Landlord/leasing agent agrees not to operate, lease or sublease property in “insert center name” to any tenant that would compete with “insert your business name” products of “list specifically which products.”

I’ll also reiterate, use a lawyer. We always encouraged potential franchisees to even take our documents to a lawyer.