A reasonable non-compete leaves room for several legitimate activities. Knowing what's safe and what's not protects you and the buyer relationship.
Generally safe (under most non-competes).
- Real estate investment, including residential properties with pools (you're an owner, not a service operator)
- Consulting in a different geography
- Working as an employee of a non-competing business
- Equipment manufacturing or sales (different business)
- Educational content (writing, courses, YouTube) about pool care
- Investing passively in someone else's pool business
Generally NOT safe.
- Servicing pools yourself in the restricted area
- Hiring techs to service pools in the restricted area under any entity
- Acquiring another route in the restricted area
- Soliciting any of the customers you sold (regardless of geography, often)
- Using customer lists from the prior business
Gray areas (read your specific clause and consult counsel).
- Servicing pools in the restricted area for "free" (to friends, family), many courts consider this competition
- Selling pool chemicals or parts in the restricted area
- Being an investor or board member in a competing business in the restricted area
- "Working with" an existing operator in the restricted area as an advisor
The relationship test. Before doing anything in the gray area, ask: would the buyer reasonably feel you were undercutting their investment? If yes, don't do it, even if a court might ultimately bless it. Litigation costs more than the activity is worth.
Non-solicit is separate from non-compete. A non-solicit ("you can't directly contact prior customers") often extends slightly longer than the non-compete and applies geography-free. Even if you move to a non-restricted area, you can't call the customers you sold.
Communicating with the buyer. If something legitimately ambiguous comes up, ask the buyer in writing for written consent. Most are flexible if asked respectfully; surprise discoveries breed lawsuits.
