Opportunity NDA and Non-Compete
Before a business is started or expanded, there is an idea for that business creation or expansion. We call these business “Opportunities.” For these Opportunities to become a reality, they often require the experience, expertise, or funding of others. The Catch-22 with any Opportunity is that, while you need others to make the Opportunity a business reality, by sharing your Opportunity with others, there is little stopping them from taking your Opportunity and making it their own…without you.
The primary way to protect your Opportunity from others is through a properly constructed Opportunity NDA and Non-Compete. These Opportunity NDAs and Non-Competes allow for you to freely and safely share your Opportunity with others while requiring that they promise not to steal it for themselves, share it with others, or do something similar with it for a definitive period of time.
Here are two silly examples of when an Opportunity NDA and Non-Compete could have saved Bob and Lilly from others taking their Opportunity.
Example #1: A New Business Opportunity
10-year-old Bob has noticed many of the people in his neighborhood own dogs. Because of that, he would like to start a dog walking service. Before Bob can market his services to the neighborhood, Bob needs some money to buy leashes, doggy bags, and doggy treats. He also needs to enlist the help of Jane because Bob could not walk the dogs every day.
Bob approaches Joey to see if he can give him $50 to start his business then goes to Jane to see if she can help walk the dogs every other day. Jane and Joey realize that Bob has a good idea, and they decide that they could actually do the dog walking service without Bob. Jane and Joey team up and start their own dog walking services for the neighborhood.
Example #2: Expansion of a Business Opportunity
12-year-old Lilly has a cookie stand. Lilly is approached by the local high school to make cookies for the whole school once a week, and they will pay her $1 per cookie. Lilly does not have a big enough kitchen and oven to make all of the cookies, but she knows that Buck, who also has a cookie stand, does have a big enough kitchen and oven.
Lilly tells Buck about her idea to use his kitchen and oven to do the cookies for the school and, in exchange, she will split the money with him. Buck goes to the school and tells them that he can sell them the cookies they need for only $0.90 a cookie. The school decides to use Buck for their weekly cookie needs instead of Lilly.
While these scenarios may look innocent, they apply to businesses at every level. By failing to put in place a proper Opportunity NDA and Non-Compete Agreement, many businesses suffer from the same things that happened to Bob and Lilly. However, the results can be much more devastating.
Contact Counxel Legal Firm
We would love to help you pursue your Opportunities with the proper protection! Contact us at (480) 744-6621 or at request@counxel.com. Don’t forget to check out the good things that others are saying about the services they received from Timothy Coons on Google.
This article is intended for informational purposes only and does not constitute legal advice for your specific situation. Use of and access to this article does not create an attorney-client relationship between you and Counxel Legal Firm. Please contact request@counxel.com or (480) 744-6621 to request specific information for your situation.
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