Non compete clause question
Posted: Sat Sep 02, 2006 11:47 pm
I have a question that I am hoping you can help me with. There is a DS food company that has in their agreement that for a period of one year after the agreement is termininated, an ex-rep will not own or operate a DS food business in a geographic location within 20 miles from their business that they just terminated from.
Can this be enforced? How can this company keep you from operating a DS business that is not in direct competition from the company you just came from? For instance, what if these companies offers only a couple of items that are similar but not the same but yet so much of what they sell are different? How would that be "hurting" the company you just came from? What if you left the first company and did not solicit the second company's customers that you had?
If a customer is loyal to a brand, they will find a way to get it. I highly doubt that a customer that is purchasing products from a DS business would stop buying their product just because their rep left the company and went to a similar one and started buying from them. I am sure one would understand both sides of the story, but is this really realistic? To ban you from all food related DS businesses? Seems extreme.
Any thoughts on this? How many DS companies actually have non compete clauses?
Can this be enforced? How can this company keep you from operating a DS business that is not in direct competition from the company you just came from? For instance, what if these companies offers only a couple of items that are similar but not the same but yet so much of what they sell are different? How would that be "hurting" the company you just came from? What if you left the first company and did not solicit the second company's customers that you had?
If a customer is loyal to a brand, they will find a way to get it. I highly doubt that a customer that is purchasing products from a DS business would stop buying their product just because their rep left the company and went to a similar one and started buying from them. I am sure one would understand both sides of the story, but is this really realistic? To ban you from all food related DS businesses? Seems extreme.
Any thoughts on this? How many DS companies actually have non compete clauses?