Ending a non-compete clause
Posted 18 February 2013 - 10:38 AM
Posted 18 February 2013 - 06:55 PM
You could spend thousands on that kind of expert or you could just throw out a figure that makes you happy and see if it's accepted or whether you can live with the inevitable counter offer.
Before you throw out a figure you also have to determine just how enforceable your non-compete really is. Not because your lawyer wrote it, but by researching case law.
So far I found two articles about Wisconsin appellate decisions about applying "sale of business" rules to non-compete agreements and it seems like Wisconsin courts are a bit undecided about it.
Oh, it's pretty clear that a "sale of business" non-compete will be judged more liberally than an employer-employee non-compete. But 10 years for pizza? My gut says no. Even in your small town I suspect that there are other pizza places competing with you.
If you were to end up in court over it you run the risk that a court might reduce the duration to half that or even less.
Here are the two articles:
It's up to you how you want to proceed.
Ask too much and you might end up with nothing. And if your buyer can't sell the business with that kind of non-compete he might find it worth challenging in court which will cost you a fortune to defend.
Might try asking the potential buyer to make an offer and see which way the wind is blowing.
Warning: Legal issues are complicated. Explanations and comments here are simplified and might not fully explain the ramifications of your particular issue. I am not a lawyer. I do not give legal advice. I make comments based on my knowledge and experience. I guarantee nothing. If you act on my comments without the advice of an attorney, you do so at your own risk.
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