Take, for example, deductibles. When franchise owners resell their franchise to a third party, the franchisor has the ability to prevent the owner of the selling franchise from opening a competing business. However, as noted above, this clause must, in order to be valid, include a geographical scope of a duration. Colorado does not have a timetable that is considered appropriate. The Colorado courts have obtained up to five years. However, five years will be far too long for many agreements. On the other hand, an agreement of more than five years could be reasonable in certain circumstances. At the end of the day, there is case law that gives us guidance as to whether a restriction is appropriate or excessive. The wider the agreement, the more likely it is to be unenforceable. The more the site and the more important needs of your employer are adapted, the more likely it is to be. This category of enforceable competitive conditions in Colorado is necessary for a competitive market. Why would someone invent a new technique or business strategy if they couldn`t protect these trade secrets? A small contractor risks its competitive advantage every time they hire a new employee or creditor to perform repairs or audits. Fortunately, in Colorado, non-competitions are allowed for trade secret cases.
Trade secrets may include: design, procedures, procedures, formula, improvement, confidential business or financial information, list of names, addresses or telephone numbers, or any other information relating to a secret and rewarding business or profession. So if you`ve signed one of these agreements or your employer is trying to get you to sign an agreement now, what do you do? Not necessarily. Many states have decided that such agreements are not applicable. Fortunately for you, Colorado happens to be one of them. Section 8-2-113 of the revised State Statutes stipulates that any contract that prohibits you from practising a skilled or unskilled labour force for which you may be compensated is automatically considered non-acute. The adequacy of the duration is determined on the basis of the facts related to a specific non-competition agreement. For example, if a company has financial plans two years in advance, it would probably be reasonable to prevent a financial manager from competing with the company for up to two years. After two years, the CFO would no longer have information that would constitute an unfair competitive advantage if transferred to another company. Agreements that are too broad or are not defined in certain clauses can be extremely difficult to implement.
To this end, some states have decided to cancel agreements considered unenforceable. In addition, agreements that interfere with the public interest may also be removed in the interest of consumer welfare. In addition to a non-compete agreement that is not applicable because of the length of non-work and the harshness it imposes on a worker, this is an area in which your employer may be wrong if it threatens you.