I came across a company that is asking in their vendor application if our company will sign a no compete clause. Just wondering if ne one here has experienced that in the property preservation business? I am a newbie to this game and just getting my feet wet.
Looking for some feed back.
Thanks,
Dallas

I'm not in that business; but I have had some experience with Covenants Not to Compete.

Before signing anything, remember you are already in the business . . . . in that territory.

By signing something like this, and subsequently parting ways, you could find yourself "out of business" at least in that territory . . . . and far worse off than you are now.


I'd respond with "depends how it's worded". How restrictive; how small a Territory; and what is the definition of the business in which you would be prevented form engaging after severing your relationship? Let your Texas Attorney determine if it's too risky for you to sign.

I've heard a lot of advice from lawyers that say non-competes don't hold much water in court and are often easy to bypass.

Are you feelin' "lucky" ?

I wouldn't enter into any legally binding agreement unless I was prepared to either abide by it . . . . or was fully prepared to defend my deviation in a Court. Even if you "might" prevail, it will not be a fun experience.

Some non competes hold up, some don't. Vermonts advice is right on, as it generally is. I would add my bit of input, as I generally do. The loser in a court fight is generally the party that runs out of money first.

I explained to them that i am an established pp contractor and currently doing work in the area. Sure i will sign i said, if they will sign an exclusive 2 year 100,000$ contract w me. Lol have not heard a peep since. This business is not the place for no compete clauses, i will always go where the money talks. Call me the vending machine of p n p we are all coin operated

It's quite difficult to offer you advice without knowing more details about the deal in question, your current business, etc. However, non competes are relatively straightforward. Consider the benefits you can reasonably expect to see by entering into the contract, the business that you will miss out on by entering into the contract (now and in the future), how limiting the no-compete is, etc. You should be able to arrive at whether this will be a good decision simply by evaluating your current business, the direction your business is heading, and the direction you see the market in general heading, although I would still recommend that you have a lawyer look over all paperwork before signing anything.