Nick505 Posted April 27, 2012 Share Posted April 27, 2012 Ok so I am interested in purchasing a route and the owner has asked me to sign a non disclosure before any details are shared. I am aware of what a non disclosure contract is but I have a question. I think a large part of this route is in my area of operation as well so it made me wonder if I could end up at one end of a legal battle if I end up booting out some of his machines because I offer a better service? (If I don't end up purchasing the route) I am not "interested" in his route just to get inside information on his company and commissions. I want to expand but there may be details that keep me from purchasing the route from him. When I have been locating I have been targeting prime locations such as laundrymats and restaurants. Most of these places already have equipment but I also have pushed some out. If I don't end up purchasing this route from the owner and in the future I push some of his machines out for what ever reason am I legally in the wrong? Maybe I should request that he with holds the actual business names and only tells me the type of locations? I could really use some clarification. Link to comment Share on other sites More sharing options...
Technivend Posted April 27, 2012 Share Posted April 27, 2012 A non- disclosure usually has some type of non-compete clause written in it somewhere. If there is a non-compete clause then depending on the wording you are usually forbidden from taking any of their locations for a predetermined amount of time. Link to comment Share on other sites More sharing options...
mission vending Posted April 27, 2012 Share Posted April 27, 2012 A non- disclosure usually has some type of non-compete clause written in it somewhere. If there is a non-compete clause then depending on the wording you are usually forbidden from taking any of their locations for a predetermined amount of time. That's my understanding as well. I would make sure that it has a definitive expiration date. After whatever that date is has passed then you would be in the clear Link to comment Share on other sites More sharing options...
Nick505 Posted April 27, 2012 Author Share Posted April 27, 2012 I am actually taking business law this semester. I am going to take a copy of the contract and speak with my teacher. The contract may not even be valid. Link to comment Share on other sites More sharing options...
mission vending Posted April 27, 2012 Share Posted April 27, 2012 I am actually taking business law this semester. I am going to take a copy of the contract and speak with my teacher. The contract may not even be valid. Even if its not valid legally speaking, the intent expressed in the agreement might be and if you were to learn about his locations and then go after his accounts the next week you probably would have a pretty tough time defending yourself in front of a jury of your peers Link to comment Share on other sites More sharing options...
Nick505 Posted April 27, 2012 Author Share Posted April 27, 2012 You are very correct. I am going to see what is best for me at a business stand point. Based on his type of machines I am thinking we already share one or two locations. Link to comment Share on other sites More sharing options...
mission vending Posted April 27, 2012 Share Posted April 27, 2012 You are very correct. I am going to see what is best for me at a business stand point. Based on his type of machines I am thinking we already share one or two locations. If that's the case and you do sign an agreement make sure you include a exception clause for any existing shared locations. Link to comment Share on other sites More sharing options...
Nick505 Posted April 28, 2012 Author Share Posted April 28, 2012 Ok. Thanks for the heads up. I am going to talk to my business law teacher tomorrow. Link to comment Share on other sites More sharing options...
Nick505 Posted April 28, 2012 Author Share Posted April 28, 2012 Would a non compete contract bar me from placing crane machines in locations he is already in as well? (this is a negotiation for a bulk route) Link to comment Share on other sites More sharing options...
dogcow Posted April 28, 2012 Share Posted April 28, 2012 probably, the long and short is ,what are the odds you think he will actually take you to court, remember a contract is only enforceable if either party actually decides to sue in the event of the breach? i mean how much money are we talking about here tens? hundreds? thousands? the answer to your specific question is how the contract is actually worded. it should be clear by that, if it is not then you need to have the other guy clarify it. Link to comment Share on other sites More sharing options...
Rick Posted May 5, 2012 Share Posted May 5, 2012 To me, the simplest way to go about it is ask him to not share the business names with you. Those are largely irrelevant anyway. All you want to know is the type of business, financials at each location as well as the equipment type and the general geographic parameters of the route. That can be done without disclosing any location names. No need for a non-disclosure at that point. Link to comment Share on other sites More sharing options...
How2vend com Posted June 18, 2012 Share Posted June 18, 2012 Would a non compete contract bar me from placing crane machines in locations he is already in as well? (this is a negotiation for a bulk route) In my experrience a non- disclosure would prohibit you from sharing vital information ( LIke Financials) with anyone outside of the contract. If it is ammended to include a non-compete as well I would ammend it to exclude the non-compete. and send it back to him letting him know that you will copmly with the non-disclosure but not with the non-compete. Why buy a route you can get for free by kicking him out and moving your equipment in ? If you can move cranes in ou obviously can get other stuf in there. Just a thought. Link to comment Share on other sites More sharing options...
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