Buyer-side non-competes (binding the seller after a sale) are typically *more* enforceable than employee non-competes, courts generally accept that protecting acquired goodwill is a legitimate interest.
Why they're enforced. The buyer paid real money for customer relationships. If the seller could immediately set up across the street and re-acquire customers, the value transferred would be illusory. Courts consistently uphold reasonable acquisition non-competes for this reason.
What's "reasonable." Geographic scope tied to the actual route footprint (not the entire state). Duration of 2–5 years (longer can be enforceable for higher-purchase-price deals). Specific to the same business activity (pool service), not all entrepreneurship.
Common scope by deal size.
- Small route ($50k–$200k): 2–3 years, ~25 mile radius
- Mid route ($200k–$700k): 3–5 years, county or metro area
- Large/multi-route ($700k+): 5+ years, multi-county or state-wide
State variation. Even buyer-side non-competes are unenforceable in California (with a narrow sale-of-business exception). North Dakota and Oklahoma also restrict them. Most other states enforce reasonable terms.
Carve-outs to negotiate.
- Geography: exclude areas where you genuinely won't compete
- Activities: exclude unrelated businesses (consulting, repairs only, equipment sales)
- "Inadvertent customer" language: if a former customer of the route reaches out to you unsolicited, you can refer them back to the buyer (avoids accidental violations)
Personal vs entity binding. Negotiate that the non-compete binds you personally and any entity you control, but only those. Avoid language that could be read to bind your spouse, adult children, or former employees.
