Nail Salon Employee Contract With Non-compete
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FAQ
While it is difficult to place a specific value on a noncompete agreement, value can be assigned during purchase accounting. Any noncompete agreement would be amortized over the economic life of the agreement.
There are two primary reasons to implement a non-compete in a salon/spa. To protect the client list and prevent the departing service provider(s) from soliciting clients serviced while employed at your salon. To protect your investment in training and education.
(c) [Employee name] agrees not to set up in business as a direct competitor of [company name] within a radius of [number] miles of [company name and location] for a period of [number and measure of time (e.g., ?four months? or ?10 years?)] following the expiration or termination of this agreement.
The noncompete agreement with the seller is generally considered to be an amortizable intangible asset that is acquired by the buyer. The value of that intangible asset is separate from the value of the target company stock that is acquired by the buyer.
While companies cannot prevent other businesses from hiring their employees, the non-disclosure agreement is very effective at preventing employees of a company from using proprietary information as a bargaining tool for recruitment from competing firms.
