QUESTION
Can a retail complex association have a non compete agreement?
Asked on Nov 05th, 2013 on Business Law - Florida
More details to this question:
we own two units in a retail complex in Englewood, Florida, where we operate an ice cream cafe. An owner who rents his property is trying to bring in a yogurt shop which would be in direct competition with us. We want a non compete clause to stop this but the other owner is saying this is against federal law. Is he right?
1 ANSWER
I'm not sure what the yogurt guy is talking about. Restrictive covenants in shopping centers are not uncommon. For example, before a bakery moves into a shopping center, it might seek a lease provision which prohibits the landlord from renting to any other tenant which will offer fresh baked goods.
HOWEVER, you would need such a lease provision BEFORE the landlord rented out the other space. Absent such a lease provision, there is nothing (assuming no zoning problems) to prohibit the owner from renting to a competing business. In other words, absent some previous agreement, the other owner is under no obligation to provide a non-compete if he doesn't want to.
Answered on Nov 05th, 2013 at 4:54 PM