Legal Question in Employment Law in Florida

non compete and build out

I work for a company in which I have signed 6 month standard non-compete, cant directly or indirectly compete, work for others, do anything, etc.. My question is.. If I wanted to start my own similar company, would the time building out a facility count as competing? If it took 6 months before I could open is this ok, or is the intent to do business illegal? Or is building out a location non descriptive until you apply for your business license, or is it based on the day you actually open and start competing?


Asked on 10/12/06, 11:57 am

2 Answers from Attorneys

Keith Stern Shavitz Law Group

Re: non compete and build out

I think the answer will likely depend on what exactly your "build out" involves, as if its the case that you're setting a store, for example, which could sell ice cream, pizza, bolts, OR the product or service that you are prohibited from working on by the non-compete, then you seemingly wouldn't yet be competing and thus shouldn't run afoul of the restrictive covenant. However, please consult with an attorney for specific advice upon a review of the actual situation you are now in.

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Answered on 10/12/06, 10:18 pm

Re: non compete and build out

The answer depends on your contract. Although I try not to tell people to spend money on an attorney, in this case it is worth it to you to get a written opinion from one. That way, you not only get advice on how to proceed under your specific facts, but also can say you relied on counsel so acted in good faith should you be sued later.

In general, you are probably okay as long as you do not solicit clients/customers while you are building out or do other things that are more in the line of competing rather than just preparing to compete.

Feel free to email if you want a specific opinion.

Good luck.

Jeff Sheldon

The Sheldon Law Firm

[email protected]

Caveat: This is general advice only and should not be relied upon as legal advice because all facts and circumstances are not known to the author.

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Answered on 10/13/06, 12:51 am


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