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by Anonymous on April 15th, 2009

Anonymous

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A student has to attend a trade school to become licensed as an instructor. Once licensed, the student could open his own school and compete with the school he attended. Would a noncompete agreement prevent him from starting a new school?

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  • by CannedHam on April 23rd, 2009

    CannedHam

    It really depends on the language of the non-competetion agreement. In general, such agreements prohibit the signer from engaging in activity that the originator deems as harmful to their business practice or from doing so within a given distance (usually a given radius) from the school's locations or within a certain time period after leaving the school

    What this means is that the newly-certified instructor cannot open a school that offers the same training as his original school or cannot open a school whose grounds are located within the original school's exclusion radius or cannot open a school for X number of years after getting certified.

    One thing to watch for is a non-compete agreement that is unfair to the student. It is reasonable for the school to say you cannot open a competing school within 10 miles of their campus (assuming the town is more than 10 miles wide) but unreasonable to say that you cannot open a school within 1000 miles.

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