Fredrick P. Niemann, Esq. of Hanlon, Niemann & Wright discusses an important issue for anyone buying or selling a business in New Jersey: how to protect yourself when negotiating a non-compete agreement.
In this brief video, Mr. Niemann explains what a covenant not to compete is, why it is commonly included in business sale agreements, and how these clauses are designed to protect a buyer’s investment while still allowing a seller to earn a living. He breaks down the key terms to watch closely, including geographic limits, time restrictions, scope of prohibited activities, and overall reasonableness under New Jersey law.
Mr. Niemann also discusses how New Jersey courts evaluate non-compete agreements, what makes them enforceable, and what can happen if a restriction is too broad or unfair. He emphasizes the importance of having an experienced business attorney review these clauses before signing, whether you are the buyer or the seller.
This video offers clear, practical guidance in plain language, helping business owners avoid costly mistakes and negotiate non-compete agreements that are fair, reasonable, and enforceable.
By Fredrick P. Niemann, Esq., a NJ Buying or Selling a Business Attorney