No compete clause on business purchased

[ncdiver98]

What is the name of your state? NC
I purchased a florist in a small town from a seller who had been in the business for over 20 years and was well engrained in the community as well as the surrounding area. In the purchase agreement I insisted on a no compete clause for a period of 5 years for the county we are in. A year after the purchase our business has slacked off and I have found out that the previous owner is working in another local florist and believe she has taken some of the client base with her. My question is one, can I enforce this no compete clause and two, what are my options for restitution?

 

[BelizeBreeze]

To be able to offer a valid opinion we would have to read the ENTIRE contract, including the no-compete clause.

The way I've seen some of them worded the seller is not allowed to 'own' a similar business but there is no mention of employment.

My best suggestion is to take the entire sales contract to a competent attorney for review.

 

[ncdiver98]

Contract Verbage on No Compete

From NC

Below is the verbage concerning the no compete clause:

12.1 Covenant Not to Compete by Seller. Recognizing Buyers’ need to protect its legitimate interests and in furthererance of the sale of the Business assets to Buyers, so long as Buyers are not in default under any agreement referred to herein, for a period of five years following the Effective Date, Seller shall not either alone or in combination with others, directly or indirectly, and whether acting as principal, agent, employee, consultant, shareholder or otherwise, carry on or be engaged or interested in or concerned with, or advise, lend money to, guarantee the debts or obligations of, or permit her name to buy used by, any person, firm, corporation, syndicate or other entity engaged or interested in or concerned with any activity which, directly or indirectly, in Catawba County, North Carolina, involves any aspect of the florist business in which Seller was engaged. This section shall survive the closing.”

Any advice anyone?

 

[JETX]

Any advice anyone?

Yes. It is possible that the 'all inclusive' non-compete clause may be too restrictive and therefore, be unenforceable.
I agree with Breeze on this.... take it to a local attorney for review. At a minimum, you will need the attorney to intercede with the former owner anway, if appropriate.