non compete agreements

[jlgoss50]

Does anyone have experience with gotcha's on non compete agreements for Innkeepers?

 

[EmptyNest]

I am not even sure what you are talking about. I have an idea..but I can't believe anyone in their right mind would sign such a thing.

 

[toddburme]

Certain states will not honor them if it restricts their ability to make a living. So in MN, you could not restrict your hired innkeeper from going across the street and hiring on there.

 

[JBloggs]

We had one in our purchase agreement, the old owners could not open an inn within a certain range of our place.
Oh AND we have told our realtor that if this place sells as a private home there is a clause about not turning it back into a B&B. The reason, it would not be a turn key/business sale this way, it is a lower priced real estate only sale. To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.
Not sure what the gotchya part means in your post.

 

[Red Handed Jill]

We had one in our purchase agreement, the old owners could not open an inn within a certain range of our place.
Oh AND we have told our realtor that if this place sells as a private home there is a clause about not turning it back into a B&B. The reason, it would not be a turn key/business sale this way, it is a lower priced real estate only sale. To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.
Not sure what the gotchya part means in your post..

To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.

So interesting. The PO's of our place not only refused to sell turnkey, but refused to sell furnished. They were convinced they could get more selling piecemeal. IDK if they did, but I do know it cost us A LOT less to furnish the place through auctions and private purchases than I would have offered for the kit n kaboodle.

 

[JBloggs]

We had one in our purchase agreement, the old owners could not open an inn within a certain range of our place.
Oh AND we have told our realtor that if this place sells as a private home there is a clause about not turning it back into a B&B. The reason, it would not be a turn key/business sale this way, it is a lower priced real estate only sale. To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.
Not sure what the gotchya part means in your post..

To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.

So interesting. The PO's of our place not only refused to sell turnkey, but refused to sell furnished. They were convinced they could get more selling piecemeal. IDK if they did, but I do know it cost us A LOT less to furnish the place through auctions and private purchases than I would have offered for the kit n kaboodle.
.

To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.

So interesting. The PO's of our place not only refused to sell turnkey, but refused to sell furnished. They were convinced they could get more selling piecemeal. IDK if they did, but I do know it cost us A LOT less to furnish the place through auctions and private purchases than I would have offered for the kit n kaboodle.

look at it this way, we are really giving away a ton of stuff, I think about this every so often when I purchase things. Case in point a new bistro set for the porch. We have one, have plenty of other furniture, so if we buy one for $350 then the next owners take it at no addtl cost to them.
Replacing every single item in a B&B is super expensive, I have a total conveyance for this B&B and you would be shocked at just the basic items.
I can post a bit here (I think I have in the past) let me pick just "a room" not parlors, kitchen, dining room. We had a table and the chairs cost more than a whole brand new set, so bought a new set. I was planning on taking this stuff with me, but now feel I want to be rid of everything. Rugs, oh don't get me started on taking out our retirement early to buy area rugs for all these rooms.
Okay so as it says on the conveyance this is what WE paid for the items. Except the books, I just rounded that off as they are now used books. But they were orig cover priced. The antique sofa could sell for much more, that is what we paid at auction. The TV is now obv cheaper, but we paid that a few years ago for it.
Full Size Bed $200.00
Mattress and Box Spring Set $400.00
Antique Oak Dresser with mirror $400.00
Antique Oak Dresser (Tall) $350.00
Antique Oak Small round table $175.00
Antique Yellow Floral Lamp $150.00
Antique Oak Fainting Sofa $600.00
Frog Lamp $30.00
Quilt/Shams/Skirt/Linens/Bath Set/Robes $300.00
Antique Mirror on Mantle $175.00
Dresser Set $30.00
End Table Lamp – White shade $50.00
Area Rugs – 1 lg 1 sm $650.00
Wingback Chair Pink $100.00
Oak Rocking Chair with cushion $150.00
Luggage Rack $30.00
Books $75.00
Vases $25.00
Oak Clock $40.00
Alarm Clock and TV w/vcr $250.00
Window Lacy Curtains/Shades x 2 $50.00
4 Framed Ink Drawings $180.00
Framed Pictures and Painted Tray - 2 green songbirds, 1 sat eve post, 3 orig family framed photos $150.00
Bathroom – Antique Bath Mirror $200.00
Bathroom – Floral Bath Set $25.00
Bathroom – Advertising Tins, old bottles $175.00
Bathroom – Antique Razor set $40.00

Shenandoah Room Total: $5000.00

 

[Samster]

We had one in our purchase agreement, the old owners could not open an inn within a certain range of our place.
Oh AND we have told our realtor that if this place sells as a private home there is a clause about not turning it back into a B&B. The reason, it would not be a turn key/business sale this way, it is a lower priced real estate only sale. To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.
Not sure what the gotchya part means in your post..

To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.

So interesting. The PO's of our place not only refused to sell turnkey, but refused to sell furnished. They were convinced they could get more selling piecemeal. IDK if they did, but I do know it cost us A LOT less to furnish the place through auctions and private purchases than I would have offered for the kit n kaboodle.
.

We have a former B&B for sale here and they are selling all the furnishings for $50K. That is a steal! It has custom silk drapes, antiques, oriental rugs - 7 guest rooms. The rugs are really worth something......

 

[wendydk]

A non-compete was part of our sale agreement...we had to promise not to open a B&B within 30 miles of Applesauce Inn within the next five years.....that was a pretty safe promise to make!

 

[Alibi Ike]

Haven't heard any stories but we did get a non-compete agreement when we bought. The sellers laughed that we thought they would ever want to do this again. What was our issue was they took the guest db with them and left us a pile of index cards. So, make sure you get a the guest info. They could copy it and use it somewhere else to start up, but you have it as well.
All of the brokers we worked with told us to get the non-compete.

 

[Joey Camb]

Haven't heard any stories but we did get a non-compete agreement when we bought. The sellers laughed that we thought they would ever want to do this again. What was our issue was they took the guest db with them and left us a pile of index cards. So, make sure you get a the guest info. They could copy it and use it somewhere else to start up, but you have it as well.
All of the brokers we worked with told us to get the non-compete..

they probably took it to sell that's where the money is.

 

[Alibi Ike]

We had one in our purchase agreement, the old owners could not open an inn within a certain range of our place.
Oh AND we have told our realtor that if this place sells as a private home there is a clause about not turning it back into a B&B. The reason, it would not be a turn key/business sale this way, it is a lower priced real estate only sale. To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.
Not sure what the gotchya part means in your post..

To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.

So interesting. The PO's of our place not only refused to sell turnkey, but refused to sell furnished. They were convinced they could get more selling piecemeal. IDK if they did, but I do know it cost us A LOT less to furnish the place through auctions and private purchases than I would have offered for the kit n kaboodle.
.

To proper explain, someone might try to buy it as a building at the lower price and then reopen it as a B&B, and not intend to buy it with the business intact, with all furnishings and business conveyances.

So interesting. The PO's of our place not only refused to sell turnkey, but refused to sell furnished. They were convinced they could get more selling piecemeal. IDK if they did, but I do know it cost us A LOT less to furnish the place through auctions and private purchases than I would have offered for the kit n kaboodle.

look at it this way, we are really giving away a ton of stuff, I think about this every so often when I purchase things. Case in point a new bistro set for the porch. We have one, have plenty of other furniture, so if we buy one for $350 then the next owners take it at no addtl cost to them.
Replacing every single item in a B&B is super expensive, I have a total conveyance for this B&B and you would be shocked at just the basic items.
I can post a bit here (I think I have in the past) let me pick just "a room" not parlors, kitchen, dining room. We had a table and the chairs cost more than a whole brand new set, so bought a new set. I was planning on taking this stuff with me, but now feel I want to be rid of everything. Rugs, oh don't get me started on taking out our retirement early to buy area rugs for all these rooms.
Okay so as it says on the conveyance this is what WE paid for the items. Except the books, I just rounded that off as they are now used books. But they were orig cover priced. The antique sofa could sell for much more, that is what we paid at auction. The TV is now obv cheaper, but we paid that a few years ago for it.
Full Size Bed $200.00
Mattress and Box Spring Set $400.00
Antique Oak Dresser with mirror $400.00
Antique Oak Dresser (Tall) $350.00
Antique Oak Small round table $175.00
Antique Yellow Floral Lamp $150.00
Antique Oak Fainting Sofa $600.00
Frog Lamp $30.00
Quilt/Shams/Skirt/Linens/Bath Set/Robes $300.00
Antique Mirror on Mantle $175.00
Dresser Set $30.00
End Table Lamp – White shade $50.00
Area Rugs – 1 lg 1 sm $650.00
Wingback Chair Pink $100.00
Oak Rocking Chair with cushion $150.00
Luggage Rack $30.00
Books $75.00
Vases $25.00
Oak Clock $40.00
Alarm Clock and TV w/vcr $250.00
Window Lacy Curtains/Shades x 2 $50.00
4 Framed Ink Drawings $180.00
Framed Pictures and Painted Tray - 2 green songbirds, 1 sat eve post, 3 orig family framed photos $150.00
Bathroom – Antique Bath Mirror $200.00
Bathroom – Floral Bath Set $25.00
Bathroom – Advertising Tins, old bottles $175.00
Bathroom – Antique Razor set $40.00

Shenandoah Room Total: $5000.00
.

When we were looking we found a place that needed 'updating' in the worst way. I calculated at least $2000 for each room. That was with stealing good stuff from other rooms and consolidating it all into several rooms to get us started. We weren't going to try to run all 12 rooms at the beginning. Most of it was getting new beds. When you can see the sag from the doorway, not good.
We were nickel-dimed at the closing. Refunding the sellers for 9 months remaining on directory listings, 2 months remaining on domain name registration. For the love of Mike, LOOK at how many zeros are on that check and quit whining. I am still amazed at having to have someone come out to determine how much fuel oil was in the tank.
When the time comes, I will sell everything in here for one flat rate. No nickel-diming. I don't care if i just paid $500 for fuel, you're gonna need it and you're gonna write me a big, fat check for the privilege. I am not going to quibble about $200 for domain registration or website hosting or fuel oil or directory listings. Just buy the place and let me move on.
I'm also not going to fix stuff. No one fixed anything for us. If i was supposed to have time for all of this fixing, the next owners will be told the same thing.