Selling my business

vervin

Please help ,is there a statutory mileage that a new owner can stop me working within ,I was told it was 3 miles .i would like to know before it comes up .

SailorSam

That's the type of thing you and the person who bought your old business would agree on and write into some sort of contract. I don't think there's anything set down in law, a reasonable difference difference in one business may only be a couple of miles whereas another business may be hundreds of miles.

vervin

Thank you ,

motorguy

vervin wrote: »

Thank you ,

Are you proposing selling your business to someone, then opening the same venture pretty much right next door?

vervin

No , they want to put a 10 miles clause ,that I feel would be unfair I think . 5 miles is fair that is why I asked was there a statutory mileage

vervin

Should say I would then work for some one NOT OPEN A BUSINESS if that helps .

paddyrg

So, as all things commercial, you compromise and agree a price. If you're going to work for someone else who's already local, you could agree in contract not to poach clients/to refer old clients back to the new owner, or any that do come to you directly you will still manage the job but he'll do the work paying you a commission/whatever.

There are no hard rules in business (beyond not killing anyone, outright fraud, etc) so it is up to you both to agree something and agree a price for it.

COOLTRIKERCHICK

In our industry, if i were to buy a business, I would want that the previous owner did not open up or work within the industry for a min of 2 years.

The thing is you can't have it both ways..

If you are selling the business, you are selling it, getting out it... you can not expect someone to hand over their money for a business, and the good will etc, and then you go and trade/work within a few miles.

Ask yourself that question would you like it?????

Slinky

COOLTRIKERCHICK wrote: »

In our industry, if i were to buy a business, I would want that the previous owner did not open up or work within the industry for a min of 2 years.

The thing is you can't have it both ways..

If you are selling the business, you are selling it, getting out it... you can not expect someone to hand over their money for a business, and the good will etc, and then you go and trade/work within a few miles.

Ask yourself that question would you like it?????

You might want a 2 year clause, it's very unlikely that would be seen by a court as legally enforceable. Terms have to be considered 'reasonable' to be enforceable and 2 years is a very long time to expect someone not to be able to earn a living in their profession.

Savvy_Sue

Does your new job have anything to do with the business you're selling? If not, I don't think any restrictions would be reasonable!

macman

Nothing is 'statutory', you can open your business next door if you wish, subject to planning consent etc. It obviously depends on the nature of the business as to what is negotiated: two restaurants nearby would hardly be unreasonable, whereas two dry cleaners adjacent would obviously take trade from one another.
It's whatever you agree between you.