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Old 07-29-2010, 09:16 PM   #18
Dale F. Saran
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Join Date: Dec 2005
Location: Westerly  RI
Posts: 559
Re: Employee Terms of Agreement?

Let me just chime in to add that we try to be as hands off as possible and let Affiliate owners run their affiliates as they see fit, so long as it doesn't hurt the overall CF name (in a very broad sense, without getting down in the weeds). Non-compete clauses can be a reasonable option if done in an even-handed, reasonable manner. It's the whacky ones (of course) that make HQ (generally) leery of them.

You guys seem to understand this. There may be times and circumstances where a non-compete within a small radius (as you've described Brian) is a good idea for both the trainer and the affiliate owner for a lot of reasons if there's a less than amicable separation. We've seen it happen and the bad will can linger. And that's not good for the whole community.

Brian - I mean this in a nice way, but it has absolutely zero to do with an extra $2K licensing fee and that's a bit insulting. Ask anyone in this community and I guarantee you you'll find way more than $2K worth of generosity from HQ to the affiliates on an annual basis - heck, I'll bet I've done over $25K annually in legal work - for free - to various affilates/owners who've called me for personal favors, legal questions, etc., and I know the rest of the staff does that kind of stuff with their own time, as well.

So, no, it's not about HQ wanting to split off trainers in order to get an extra $2K here and there. Our disagreement with non-competes is just that generally they're (a) not well-drafted and particularly one-sided, (b) they're anti-competitive by their nature (and we're philosophically opposed to that), (c) they're generally not enforceable because you can't prevent someone from making a living, particularly in this industry, and (d) we'd rather see folks just talk to each other and work things out peaceably. Failing that, we'd rather not have Affils using psychological tools to control their trainers.

Having said all of that, they can be useful when reasonable. I'll leave it at that. Best of luck to all of you. Call me if you have questions and I'm happy to chat. My number's easy enough to find using google or pm me.

Dale
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