Now suppose that you decide to open up a full-service 24-hour auto repair shop.

Question

Now suppose that you decide to open up a full-service 24-hour auto repair shop. Your shop is the only one that is open 24 hours a day in your home town. In fact, you are pretty sure it is the only 24-hour auto repair shop in the state. Your business is now a great success, but you had a great deal of trouble finally finding an auto mechanic willing to work the late shift. You are now concerned that this mechanic can leave you at any time and go open help someone else open up a 24-hour shop. You decide to make him sign a noncompetition agreement saying that if he ever leaves your shop he cannot work as an auto mechanic anywhere in your state for the next seven years. He looks at you and says, “Are you out of your mind?” What alternative terms of a noncompetition agreement do you think would be more reasonable?

Explanation / Answer

Idea for 24 hour auto reapir shop is great in itself and it proved to be successful for you.But the problem here is that an idea cannot be patented, hence the mechanic can legally open an 24 hour auto mobile repair shop without your permission.

The best solution for retaining the mechanic is making him sign a bond with you just as employees sign in a Multinational company for 2-3 years where every year he will be promised a raise of about 10%-20% according to his performance and if he wishes to leave your shop he is entitled to pay 6months of salary as bomd fees to you .So this type of contract will keep him satisfied and also the bond fees will discourage him to leave this shop.

In 2-3 years you will have enough market name that no other competition can directly threaten you.

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