Running a web design agency can be tough, especially in a competitive market. One way to protect your business is by using a Non-Compete Agreement. This type of agreement helps ensure that your employees or contractors won’t leave your company and immediately start working for a competitor or open their own competing business. Knowing how to write a Non-Compete Agreement is important for keeping your business safe and successful.

In this guide, we’ll explain what a Non-Compete Agreement is, why it’s important for web design agencies, and how to write one that fits your needs.

What Is a Non-Compete Agreement?

A Non-Compete Agreement is a legal document that prevents someone who works for you from joining a competing business or starting their own competing company for a certain period after they leave your agency. It also sets limits on where and how they can compete, which helps protect your business’s secrets, client lists, and special design processes.

Why Web Design Agencies Need a Non-Compete Agreement

Web design agencies are built on creativity, technical skills, and strong client relationships. Your employees and contractors often have access to valuable information that could be used by competitors. If they leave and take this knowledge to another company or start their own web design business, it could hurt your agency.

Here’s why having a Non-Compete Agreement is so important:

• Protecting Your Business Secrets: Your agency may have unique ways of designing websites, pricing strategies, or other trade secrets that you don’t want falling into the hands of competitors.
• Keeping Clients: If a former employee or contractor takes your client list to a competitor, you could lose valuable business. A Non-Compete Agreement helps keep your clients with your agency.
• Protecting Your Investment: You spend time and money training your employees and contractors. A Non-Compete Agreement ensures that they don’t use that training to benefit a competitor.

How to Write a Non-Compete Agreement

Writing a Non-Compete Agreement doesn’t have to be complicated. Here are some simple steps to help you create one that works for your web design agency:

1. Identify Who Is Involved

Start by clearly naming the people involved in the agreement. This includes your web design agency (the employer) and the employee or contractor. Make sure the names are correct to avoid any confusion.

1. Define the Scope

It’s important to set clear limits on where and how the employee or contractor can compete with your agency. This includes:

• Geographic Area: Specify the area where they are not allowed to work for a competitor or start a competing business. This could be your city, state, or region. Be reasonable with this area to make sure the agreement is enforceable.
• Time Period: Decide how long the non-compete should last after they leave your company. Common time frames are six months to two years.
• Activities Restricted: Describe what the employee or contractor is not allowed to do. This could include working for a competing web design agency, starting their own web design business, or trying to steal your clients.

1. Provide Consideration

For a Non-Compete Agreement to be valid, the employee or contractor must receive something in return for signing it. This could be a new job, a promotion, or continued employment. Make sure to clearly state what they are receiving in the agreement.

1. Explain the Reason for the Agreement

It’s important to explain why you need a Non-Compete Agreement. For a web design agency, this might include protecting your business secrets, keeping your clients, and safeguarding your investment in training. Clearly stating these reasons can make the agreement stronger and more enforceable.

1. Include a Severability Clause

A severability clause is a fancy way of saying that if one part of the agreement is found to be unenforceable, the rest of the agreement still stands. This is important because it helps protect the agreement as a whole, even if there’s a problem with one part.

1. Outline What Happens If the Agreement Is Broken

Make sure to clearly state the consequences if the employee or contractor breaks the Non-Compete Agreement. This could include legal action, financial penalties, or recovering any losses your business might suffer. Being clear about the consequences can help prevent the agreement from being broken in the first place.

1. Get Legal Advice

Before finalizing your Non-Compete Agreement, it’s a good idea to have a lawyer review it. Laws around non-competes can vary depending on where you are, so getting professional advice can help ensure your agreement is enforceable.

Conclusion

Knowing how to write a Non-Compete Agreement is essential for any web design agency that wants to protect its business. This agreement helps safeguard your business secrets, keeps your clients with you, and protects the time and money you’ve invested in training your team. By following the steps outlined in this guide, you can create a Non-Compete Agreement that meets your agency’s needs and helps you stay competitive in the fast-paced world of web design.

Remember, while this guide provides a strong foundation, it’s always best to have your Non-Compete Agreement reviewed by a legal professional to ensure it’s fully enforceable and tailored to your specific situation. Protect your agency’s future by taking the time to draft a well-thought-out Non-Compete Agreement today.