8 Amazing Non Compete Agreement Template

Do you have a plan to make a non compete agreement in the near future? Of course, there are many things to be prepared for this action. One of them is the sheet of the agreement itself. A sheet is a place where all people involved in the agreement give their signs. Meanwhile, there are also terms and conditions along with the legal force if one of the parties violates them.

Since there are many things to be written down on the piece of paper, it seems you need a non compete agreement template. Just like other templates, this one provides the indicators and all points needed. Then, all you need to do is just writing down the requirements, terms and conditions, related laws, and more. Sure, the clear names must also be available there.

Types of Non-Compete Agreements

It can be used in various contexts, each serving a specific purpose. Here are two common types of non-compete agreements:

Employee Non-Compete Agreements

These are the most common type. Employers typically use them to control workers from exiting the company, creating a competing company, or performing for competition within a particular period and geographic area. 

The agreement covers the company’s data and trade unknown and helps maintain its competitive advantage. It’s important to note that the enforceability of employees varies by jurisdiction. Some places are heavily regulated to cover employees’ rights to change jobs and earn a residence.

Non-Compete Agreements Between Businesses

These agreements are often used when two companies enter a partnership or when one company acquires another. 

The agreement controls the parties from engaging in activities that could contend with the shared business interests during the partnership or for a specific time after the acquisition. 

This type of agreement helps cover each party’s investment and business interests.

In both types, the terms must be appropriate in scope, geographic area, and duration to be enforceable. If a court finds the terms overly restrictive, it may refuse to enforce the agreement. 

Therefore, seeking legal advice when drafting a non-compete agreement is required to provide it is fair, reasonable, and compliant with local laws and regulations.

Key Components of a Non-Compete Agreement

It generally contains several essential factors that define its scope and enforceability. These components contain:

  1. Parties Involved: The deal should specify the details, typically the employer and the worker or contractor.
  2. Duration: The deal should decide when the non-compete rules will be effective. This time must be valid and secure to be enforceable.
  3. Geographic Scope: The deal should define the area where the rules apply. It could be a typical city, state, or country or a certain radius from a specific location.
  4. Prohibited Activities: The deal should plainly outline the actions the individual is banned from engaging in. It could include performing for a competition, starting a similar business, or using proprietary data.
  5. Consideration: The deal should specify what the individual will receive in trade for granting the non-compete restrictions. It could be a job offer, a promotion, special training, or other payment conditions.
  6. Consequences for Breach: The deal should outline the consequences if the individual breaches the non-compete agreement. It could include legal action and financial penalties.

Importance of a Non-Compete Agreement

It protects a business’s interests and maintains its competitive advantage. Here’s why:

  1. Protects Proprietary Information: It can control workers or contractors from sharing proprietary data or business unknown with competitors.
  2. Prevents Unfair Competition: By controlling employees from performing for competitions or creating a similar company for a certain period, non-compete contracts can help companies maintain their competitive advantage.
  3. Protects Investment in Employees: Businesses often invest significant resources in training their workers. It can prevent competitors from benefiting from this investment.
  4. Provides Legal Recourse: If an individual breaches a non-compete agreement, the business can take legal action and seek damages.

It can effectively cover drive interests; they must be used responsibly and reasonably. More relaxed agreements may not be enforceable and could harm the business’s reputation. It’s always advisable to seek legal counsel when drafting a non-compete agreement.

How to Write a Non-Compete Agreement

Writing It applies a detailed review of the terms and conditions that will save your company’s interests without being overly restrictive or unfair to the other party. Here is a step-by-step guide on how to write an effective non-compete agreement:

  1. Identify the Parties: Determine the points applied in the agreement. It typically includes the company’s name, and the worker or the other party decides not to compete.
  2. Define the Contract’s Content: It could include specific types of work, certain industries, or certain business activities. Be as specific as possible to avoid any ambiguity.
  3. Set the Duration: Select how long the non-compete will be in effect. The duration should be suitable and justifiable. Too long, and it may be considered overly restrictive and unenforceable.
  4. Specify the Geographic Scope: It could be a typical city, state, or government or a certain radius from a specific location. Again, the geographic area should be good.
  5. State the Review: In legal terms, consideration is what the worker gets in return for consenting to the non-compete. It could be a job offer, a promotion, special training, or a financial bonus. It’s necessary to state this clearly in the agreement.
  6. Have a Non-Disclosure Clause: Many also contain a non-disclosure clause, controlling workers from sharing personal business data.
  7. Add a Severability Clause: If one contract element is unenforceable, the rest still stands.
  8. Get Legal Advice: Before finalizing the agreement, having a lawyer review it to ensure it’s legally sound and enforceable is a suitable idea.
  9. Sign and Date the Agreement: Both parties should sign and date the agreement. It’s also a good idea to have the signatures witnessed or notarized.

Remember, a non-compete agreement is a legally binding contract with significant implications for both parties. Therefore, ensuring that the agreement is fair, reasonable, and written is essential.

Benefit of non-compete agreement templates

Using templates for non-compete agreements offers several advantages:

  1. Saves Time: Templates provide a preformatted structure, saving you the time it would take to draft an agreement from scratch.
  2. Ensures Completeness: Templates typically include all the key components of a non-compete agreement, ensuring you don’t overlook any important details.
  3. Provides Legal Framework: Many templates are designed by legal professionals and provide a solid legal framework for your agreement.
  4. Customizable: While templates provide a standard format, they can be easily customized to fit your needs.
  5. Reduces Errors: A template can help reduce errors and omissions, ensuring your agreement is thorough and professional.

While templates can be a useful starting point, they should not replace legal advice. Always consult a legal professional when drafting a non-compete agreement to ensure it complies with local laws and regulations.


Non Compete Agreement Template

Non Compete Agreement



Non Compete Agreement Template


Employee Non Compete Agreement Template

Employee Non Compete Agreement Template

Non Compete Agreement Between Two Companies


Non Compete Agreement Between Two Companies

Non Compete Agreement Employee


Non Compete Agreement Employee


Non Compete Agreement Example

Non Compete Agreement Example


Non Compete Agreement Free

Non Compete Agreement Free


Non Compete Agreement Sample

Non Compete Agreement Sample


How to Use a Non-Compete Agreement Template

A non-compete agreement template can simplify creating a comprehensive and legally sound agreement. Here’s a step-by-step guide on how to use a template effectively:

  1. Choose a Template: Start by selecting a template that suits your needs. There are many free and paid templates available online. Ensure the template you choose includes all the key components of a non-compete agreement.
  2. Customize the Template: Once you’ve chosen a template, you must customize it to fit your specific situation. It includes filling in the names of the parties involved, the duration and geographic scope of the agreement, the prohibited activities, and the consideration.
  3. Review the Template: After customizing the template, review it carefully to ensure it accurately reflects the agreement between the parties. Make sure the language is unambiguous.
  4. Seek Legal Advice: Before finalizing the agreement, it’s advisable to seek legal advice. A lawyer can check the deal to provide it’s legally sound and enforceable.
  5. Sign and Date the Agreement: Once it has been reviewed and finalized, both parties should sign and date it. Keep a copy of the agreement for your records.