Employee Non-Compete Document

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This legal document is essential to any serious personal training studio business. If all you’re doing is teaching your new trainers how to build a personal training business, getting them a full client load, and then allowing them to leave with all the clients you built up for them you may as well never hire anyone in the first place… Here’s what you must do in order to ensure your advertising dollars and time spent training each new CPT don’t go to waste:

First off, I’m not into forcing anyone to do anything…

I only hire ONE CPT at a time and I carefully select them according to personality, education, and the ability to work as part of my time.

However, this is a business and one that is in business to make money… obviously, we need to get our clients results, but that can’t come at the expense of going broke from poor management decisions.

Once I’ve offered the position to the CPT I would like to come work for the studio I have them sign an “employee non-compete.”

This document basically says that they cannot take any of the clients I give them or use my systems within 30 miles of my studio location. The break it down even more it means that they can’t steal the studio clients I got them or my private systems…

If they don’t sign the document, then they don’t come to work for me.

It’s pretty straight forward and simple, but VERY necessary.

It’s the same reason, all S3 Members are bound by a non-compete license. When you sign up it is part of the agreement that you can only use this material in your specific location and you cannot resell this information.

If anyone breaks your non-compete you can (and should) 1st send them a letter from your attorney with a cease and desist. If they don’t stop then you have every right to sue them for monetary compensation and for breaking the contract.

This is how the big boys play and if you want to start making serious money without having to do all the work yourself you will need to play the game.

Now for the straight talk…

It doesn’t have to be all that intense of a conversation with your new hires.

I simply let them know that they can’t take the clients I get them or the information and systems to use on their own…

Easy, right?

It is, but you must do it.

Here’s the “Employee Non-Compete Form” I use:

>>> Download the Employee Non-Compete Form here

I know a lot of you were asking for this so I hope this help…

P.S. Please change out my studio name and check with your attorney before using this form. It was built for Massachusetts and things may run differently in your neck of the woods…

P.P.S. All of my CPTs are independent contractors, not W-2/4 employees

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  • Allura Carraway

    The wording is for employees. How about independent contractors training in the studio. For example, Independent contractors who bring in their own clients but also train studio clients.

    • Hi Allura,

      All of my studio CPTs are independent contractors. This is the form I use with them.

      If they bring their own clients from a former place of employment then I add that client’s name as an exception to the non-compete.

      Hope that helps!

  • Andrew Voris

    OK….BIG question for you…..I have two Personal Training schools in the area and I want to start using them as a pool of trainers from which to hire. I also want to get in on their internship program where each trainer to be has 30 or more hours to spend with me in the studio. They observe a couple sessions and assessments and fly solo on a few of each also when I feel they are ready and would represent me well. All for zero payroll.

    What are your thoughts on interns and please give me all the griddy details you got if you advise to proceed.

    Thanks again!

    • Hi Andrew,

      This is a great idea! I have not used future CPTs in training as interns, but I have thought about it…

      I will be posting a site in the future (after I test it out) that allows you to find interns anywhere (it seems better than Craig’s List)

      What I would do is hire the CPT interns to co-teach classes, etc. I’m assuming they won’t be fully certified which means you may be liable if they injure anyone…

      Just keep in mind, though, that interns do take some training so I would have them sign a 3 month internship contract to make it worth your time. I’ll post more on this in the coming weeks…