CrossFit Discussion Board  

Go Back   CrossFit Discussion Board > Community > Running a CrossFit Facility
CrossFit Home Forum Site Rules CrossFit FAQ Search Today's Posts Mark Forums Read

Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

Reply
 
Thread Tools
Old 09-15-2008, 04:34 PM   #1
John Klessinger
Member John Klessinger is offline
 
Profile:
Join Date: Jan 2008
Location: Edgewater  MD
Posts: 55
Covenant not to compete

I recently was recently told by an employer that they had to "cut ties" due to me running a small fitness group on my own outside of the gym's business. Admittedly, 1 of the 5 members was a member of the gym. I signed a covenant not to compete within the area code in July of 2007. I and a friend are getting CF level I certification at the end of this month and would like to start our own small grass-roots business using Crossfit principles, methods and programming. We plan on affiliating sometime in the future. I guess what I am looking for is advice on this. the convenant stated for two years after termination of employment. However, I was terminated and did not leave on my own will. Do that constitute an ending of the convenant? Does anyone have any input?
  Reply With Quote
Old 09-15-2008, 04:52 PM   #2
Derek Franks
Member Derek Franks is offline
 
Profile:
Join Date: Feb 2008
Location: Durham  NC
Posts: 471
Re: Covenant not to compete

You need to talk to a lawyer. Sometimes they're enforceable, sometimes not.
  Reply With Quote
Old 09-15-2008, 06:20 PM   #3
George Mounce
Banned for Ethical and Integrity Violations George Mounce is offline
 
Profile:
Join Date: Mar 2007
Location: Steens  MS
Posts: 3,295
Re: Covenant not to compete

Quote:
Originally Posted by John Klessinger View Post
I recently was recently told by an employer that they had to "cut ties" due to me running a small fitness group on my own outside of the gym's business. Admittedly, 1 of the 5 members was a member of the gym. I signed a covenant not to compete within the area code in July of 2007. I and a friend are getting CF level I certification at the end of this month and would like to start our own small grass-roots business using Crossfit principles, methods and programming. We plan on affiliating sometime in the future. I guess what I am looking for is advice on this. the convenant stated for two years after termination of employment. However, I was terminated and did not leave on my own will. Do that constitute an ending of the convenant? Does anyone have any input?
Depends on the legal interpretation of "termination of employment". If it doesn't specify a means and is enforceable you may be out of luck. Find another area code (I hope you maybe mean Zip code, as area codes are for phone numbers and are absolutely huge which means you are really out of luck).
  Reply With Quote
Old 09-15-2008, 07:37 PM   #4
Jason Tanner
Departed Jason Tanner is offline
 
Profile:
Join Date: Sep 2007
 
Posts: 298
Re: Covenant not to compete

Pretty much already said, contact a lawyer to get a clear interpretation of the non compete contract.
  Reply With Quote
Old 09-16-2008, 07:17 AM   #5
Chris Worrall
Affiliate Chris Worrall is offline
 
Profile:
Join Date: Feb 2008
Location: Stockport  Manchester, UK
Posts: 46
Re: Covenant not to compete

does Crossfit (constantly varied functional movments performed at high intensity) compete with their business (programed non-functional isolation excercises performed at low intensity?)?
  Reply With Quote
Old 09-16-2008, 07:51 AM   #6
Gary Maholm
Member Gary Maholm is offline
 
Profile:
Join Date: Oct 2007
Location: evansville  indiana
Posts: 65
Re: Covenant not to compete

Many years ago i left an employer and went to work for another company in the same industry. I had signed a non-compete agreement. when they found out that i was working at the particular company i quickly received a subpoena and my new company was ordered to stop letting me come to work until matters were settled.

You definitely need to seek legal counsel. These can be very tricky matters and you do not want to proceed incorrectly.

In my specific case my attorney was able to prove that the company that i went to was NOT a competitor of the company that i left...even though the previous company WAS a competitor of the new employer. Sound confusing? yes..thats why you get a lawyer.

Good luck.
  Reply With Quote
Old 09-16-2008, 11:22 AM   #7
Henry Miller
Member Henry Miller is offline
 
Profile:
Join Date: Jul 2008
Location: Monticello  MN
Posts: 217
Re: Covenant not to compete

Many times a court will look at a non-compete and throw it out because they can't keep you from eating, and you need to work to eat. When CEOs get a golden parachute a part of that is they agree to a non-compete, the golden parachute is supposed to keep them alive until it expires.

If this is upheld you should try to get pay for the time you cannot work in your choosen field - figure the difference between what you can make as a trainer, and what you are making flipping burgers for two years, and ask for that. Once again only a good lawyer can make this happen I've never heard of it happening, but if your lawyer asks just right they will run away lest they owe you wages while you don't work.

Normally they are NOT enforceable, but it varies from state to state, subtile details in the wording AND lawyer to lawyer (so make sure you get a good lawyer)

Normally it would help that you were terminated, but if they can show you were competing while working there that actually hurts as they can get you for that - maybe. It doesn't help that your post here implies that you intended to compete and that may be allowed tesamony in court. Of course if cross-fit is a different type of exercise it isn't competing.
  Reply With Quote
Old 09-16-2008, 08:06 PM   #8
Joey Powell
Member Joey Powell is offline
 
Profile:
Join Date: Oct 2006
Location: Prescott  AZ
Posts: 569
Re: Covenant not to compete

John, I don't mean to be picky, but if you charged people when you say you were "running a small fitness group", I would say you, in fact, broke the covenant unless I am missing something.

If that is the case, how are you to be trusted as a CrossFit affiliate unless you honor you deal with your former employer and do business outside the area code?

Your employment status and the signing of the covenant are not dependent on each other. They are independent of each other which is why your former employer wanted it in the first place. You action might have given rise to you no longer being employed with them, but it does not nulify your "legal" obligation to the covenant, if it is indeed a legal agreement, or your "word" as a man.

Am I missing something??
  Reply With Quote
Old 09-17-2008, 04:14 AM   #9
John Frazer
Member John Frazer is offline
 
Profile:
Join Date: Feb 2004
Location: Northern Virginia  VA
Posts: 435
Re: Covenant not to compete

One factor the courts look at in these things is often the geographical scope. For instance an employer might be able to keep an ex-employee from competing in the same city, but not "east of the Mississippi."

The area code seems like a pretty broad restriction -- there are only two (old) area codes in Maryland, and even the smaller one is over 100 miles end to end as the crow flies. Good thing you aren't in Montana or Alaska!
  Reply With Quote
Old 09-17-2008, 01:51 PM   #10
John Velandra
Member John Velandra is offline
 
John Velandra's Avatar
 
Profile:
Join Date: Jun 2004
Location: Fayetteville  NC
Posts: 710
Re: Covenant not to compete

John, Joey hit it right on the head... were you doing what you did under the radar? Were you doing it to build up your own clientele on the side? And were you planning on quitting once you built up your "grass-roots" business? If any of those are true, you broke the covenant.

Trust is the primary ingredient for both parties - right or wrong terms that you signed to uphold, but they did trust you to uphold your end and you were conducting a business using their resources (1 client).

If one of my trainers was doing business on the side with one of our clients, I'd do - and did - the same thing. It's basically stealing.
  Reply With Quote
Reply


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
When is a lift considered compete? Alex Fullingim Exercises 4 04-12-2008 03:57 PM
Adventure races, anyone compete? Kurt A Gross Competitions 5 11-17-2006 06:07 AM


All times are GMT -7. The time now is 01:28 PM.


Powered by vBulletin® Version 3.6.8
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
CrossFit is a registered trademark of CrossFit Inc.