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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I operate a fitness club (gym). Our members sign a contract

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I operate a fitness club (gym). Our members sign a contract outlining the terms and club policies. If I want to prevent a current or previous member from opening a competing business in the vicinity, can I include a point in the contract that would legally prevent this? If so, how should this be worded?
Thank you for the post, I am happy to assist you by answering your questions. Is your concern whether such a clause would be legally enforceable, or is it that enforceable or not, you want to include the clause to deter members from opening their own facilities?
Customer: replied 4 years ago.

Ideally I would like this to be legally enforceable, but not sure if that's possible. If it's not, I would still like to have something to deter members from opening thier own facility.

Thank you, XXXXX XXXXX not be legally enforceable because it would be against public policy to enforce such a provision prohibiting persons whom are not under your employ or sharing in a business venture with you (i.e. partners or shareholders) from competing with you. To make such a provision legally enforceable, you would need to create shares in your gym and each member be a shareholder in the gym, not just a paying customer of the gym (even if the customer's title is "member"). If you want to have language in your membership agreement that serves to deter members from creating their own gyms, it would read similar to: XXXXX XXXXX of the good and valuable consideration, the receipt and sufficiency of which is hereby affirmed, the undersigned agrees that for a period of ____ months/years he/she will not, alone or in concert, create, establish, or assume an ownership interest in or act as independent contractor or consultant for, a competitor of (your business) within ________ (mile radius) of your location.

Please let me know if you have any follow up questions.
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