• If you are engaged in a buy/sell, do not assume that you can enforce a non-compete with anyone other than a member of the seller’s control group (25% equity ownership). If the FTC TRR is finalized, any non-compete with a manager of a selling dealership without that minimum amount of equity may be unenforceable. What is not answered is how this will affect any separate compensation paid or allocated for such an agreement. Scan the QR code to get more details. https://vada.com/blog/2023/02/14/ the-last-days-of-non-compete-clauses We have long counseled dealers to consider using non‑disclosure agreements and non-solicitation agreements instead of non-compete clauses. vada.com 15
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