What Happens To Noncompete Covenants When You Sell Accounts?

Covenants not to compete are a basic part of the textile rental industry. Most textile rental companies, large, midsized or small, have entered into noncompete covenants with key employees. These covenants not to compete are written agreements that provide that in the event that the employee leaves the company—either voluntarily or is fired—the employee agrees that he or she will not compete for a reasonable period of time within a reasonable trade area. 
 
A typical agreement is reached between the company and a driver/salesperson. Under that agreement, the driver/salesperson would agree that for a period of one ...

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