Noncompete Clauses in the Lease

A new spa and nail bar is opening near me and I have been talking with the owners about renting a room. (This would be my first rental) I just saw the lease I would be signing and they not only want to own the menu I sent for them to look at, but also want a noncompete radius of FIFTY miles for one year after I am no longer renting from them. I would not be able to retain any of the clients that I built up either as these would be seen as property of the spa. I could see this if I were an employee, but I would be the only esthetician providing the services and would be actively working to build my business (independent contractor/renter.) They can ask me to leave at any time with a 10 day notice. All of that business building would then be theirs. Sounds unusually slanted. When I questioned these things I was told that it was because most of my business would be coming from the marketing of the new spa. Any advice or opinions welcome!

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Permalink Reply by Nondy Llewellyn on May 29, 2011 at 8:04pm

I have just one word for you.  RUN!

 

Nondy

Permalink Reply by Mary Turner on May 30, 2011 at 2:38pm
OMG....if it wasn't serious I would actually laugh !! What a ridiculous lease ! Avoid these people like the plague....don't just run, run FAST !!!
Permalink Reply by Jodi on May 30, 2011 at 6:26pm
How can a clientele be the spa's property?  Last time I checked, it was up to the clients where they wanted to go, and if some wanted to follow you to a new location, no one can legally stop them.  I'm pretty sure a spa can't force someone to keep going there.  Owners sound nuts.  I'm with everyone else...RUN!
Permalink Reply by Madeleine Bongiorno on May 30, 2011 at 8:02pm
LOL... you guys are great!  I agree.  I wrote to her and declined and got a revised lease sent back to me.  This one allows me to retain clients after leaving.  It now states that I am not allowed to open a spa that offers anything other than esthetics within thirty miles for one year.  The owners do nails and are also leasing to 2 massage therapists.  Gosh I hope those ladies read their lease well.  Would hate to see them unable to practice massage within FIFTY miles after leaving.
Permalink Reply by Mary Turner on June 1, 2011 at 3:02pm
If you are an IC, she can't make you do anything, outside of following the renter/landlord agreement. It's no different than my landlord trying to dictate to me what I can do if I move out. I agree, they need more biz education !
Permalink Reply by Andrea Stein on May 30, 2011 at 11:38pm

I was just talking with another Esty about a simular situation and I will say it again to you...look elsewhere! They plan to own you and all you work for without reservation!! Nondy has it right and I speak from experience and only add RUN FAST!

Andrea

Permalink Reply by Susanne Schmaling on May 31, 2011 at 7:02pm
If you are an independant contractor the owner of the facility cannot 'own' anything that you create as well as enforce a non compete agreement. Sounds like a spa owner who needs some business education. I would be very careful. Good luck!
Permalink Reply by Laura Cooksey on May 31, 2011 at 7:15pm
In some states (like California) non-compete clauses are not enforceable.  The owner can enforce not taking any "trade secrets" however.

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