GeographyIf the company is local, you can define a particular domain that is limited. For example, if you have a lawn care business, you might want to prevent former employees from starting the same type of business near you. Competition bans can be challenged and are not enforceable if they are too restrictive – which is often the day. Each state has its own laws on whether or not to enforce a non-compete clause. Some, such as California, have found it illegal, except when selling a company or a shareholder`s shares or dissolving a partnership. Others, such as Wisconsin, Nebraska and Arkansas, allow reasonable agreements, but will invalidate contracts that are too broad. In order to facilitate the complexity of the world of non-competition, we define below exactly what a non-competition clause is, sketch out what they contain, give examples of what is (generally) enforceable and what is not, and link to a sample of a standard non-compete agreement. Your existing customer base is one of your biggest assets. Finally, each new lawn care company must develop its own customer list, a process that can take years. Ideally, your customer base consists mainly of regular customers who pay upfront and commit to long-term contracts, as this is the basic type that is most attractive to buyers. Creating your lawn care store wasn`t easy. You invest a lot of time and effort in building a successful business. But for many homeowners, it`s harder to let go of business than to get there.
To be enforceable, non-compete agreements should be limited to a legitimate commercial purpose. A legitimate business purpose is a key employee. A key employee is an employee who could disclose the trade secrets or goodwill of a client of an employer to a competitor, or a person with “unique special skills”. Client goodwill is former clients with whom the key employee has developed relationships based on the employer`s good name. A conventional non-compete contract is a contract by which a worker undertakes not to engage or to set up a competing business with an employer for a number of years after the worker has left the business. . . .