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Will I be stopped from working nearby?restrictive covenants explained

Almost certainly for a while, because buyers pay for your clients, so the sale contract will normally stop you working, opening a salon or contacting clients within a set distance for a set time.

A restrictive covenant protects the goodwill the buyer has paid for. Without one, a seller could take the money, open around the corner and take the clients back.

What they usually cover

  • Not opening or working in a competing salon within a radius, often between one and five miles depending on the area.
  • Not approaching or serving existing clients.
  • Not recruiting the salon’s staff.
  • A time limit, commonly between one and three years.

What is reasonable

Courts will only enforce a covenant that goes no further than needed to protect the buyer’s interest, so very wide radii or long periods can be unenforceable. If you plan to keep working, for example renting a chair elsewhere, raise it at the offer stage and agree the terms rather than arguing later.

Questions

The short answerin one paragraph

Almost certainly for a while, because buyers pay for your clients, so the sale contract will normally stop you working, opening a salon or contacting clients within a set distance for a set time.

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