Starbucks no compete clause

[jdandtracy]

Hello,
My wife was a manager for Starbucks and we are about to open our own shop. She resigned in February 2006. Does anyone know if there is a time limit for Starbucks managers with regard to a no compete clause?
Thanks!
JD

 

[FXAdam]

Does she have a copy of her employment contract? Does she remember anything about a non-compete clause even being in the contract? Any chance she still has a friend working at the Starbucks who could look into that for her by examining their own, most likely identical, contract?

 

[S&Wgroundcoffee]

JD good luck on your new venture. I don't know about a no compete clause, but I was wondering about the green beans you are going to roast, grind and serve. Can you tell me something about them? Where you will get them, what types, all arabicas? Just curious. Thanks,
Joe

 

[demetri]

Your wife's contract should specify a time frame. An unlimited time frame is somewhat unreasonable but Starbucks has the cash to keep you in court long enough to bankrupt you regardless of who would win in at the end of the day.

It's something that a business here in town tried to do with a competitor. One was a small business that had been operating under a family name with one location for over 50 years and the other was a national chain that had been around less than 20 years but with a similar name that many people in town confused. They sold very different types of product but the national chain still sued the small business over a trademark dispute knowing they wouldn't win a final court decision.

The goal was to keep delaying appearing in court racking up the legal fees until they bankrupted the smaller competitor.

If there's one thing I've learned from Austin Powers is that Starbucks is an evil corporation.

I'd get that contract in front of a lawyer before opening a new business. When things are vague courts tend to side with the party that didn't have control over the contract.

I'm sure there's no problem though if your wife is merely an employee of the business.

 

[jdandtracy]

Thanks everyone for your input.
We have decided to open the shop under an LLC name, with me as the only owner of the LLC. Tracy can be an employee only, and I will sell her half interest at a future date for $1. Is she getting a deal or what?? LOL


I don't think there will be any issues with her being an employee, especially if her title is listed as 'barista', as opposed to manager, etc.

Thanks,
JD

 

[jdandtracy]

JD good luck on your new venture. I don't know about a no compete clause, but I was wondering about the green beans you are going to roast, grind and serve. Can you tell me something about them? Where you will get them, what types, all arabicas? Just curious. Thanks,
Joe

Joe,
Tracy and I have both worked for Starbucks and know how to run a shop. However, neither of us have roasting experience. We are installing a roaster in our shop and intend to learn. As for sourcing our beans, we are just beginning to do research on this. There are several green bean wholesalers on line, but it would be nice to hear from some forum members on best practices... Any advice would be greatly appreciated!

Thanks,
JD

 

[demetri]

Thanks everyone for your input.
We have decided to open the shop under an LLC name, with me as the only owner of the LLC. Tracy can be an employee only, and I will sell her half interest at a future date for $1. Is she getting a deal or what?? LOL


I don't think there will be any issues with her being an employee, especially if her title is listed as 'barista', as opposed to manager, etc.

Thanks,
JD

I think this is a very smart move on your part. Good luck with the new venture!

 

[Liliput]

JD good luck on your new venture. I don't know about a no compete clause, but I was wondering about the green beans you are going to roast, grind and serve. Can you tell me something about them? Where you will get them, what types, all arabicas? Just curious. Thanks,
Joe

http://www.greenbeanery.ca/bean/catalog ... p?cPath=21 sells green coffee beans. I came across them in my research for fair trade suppliers.

not sure if they ship to the US, but they would probably be able to put you in contact with some in the States, if they don't.

cheers

 

[Coffee Guy]

Hey jdandtracy:

Regarding the non compete, check with an attorney that specializes in employee contracts and the like. Sometimes non compete clauses are non binding and in some cases can not be enforceable. It will depend on the terms in the contract, i.e., dealing with distance, competing national chains, or even length of time in returning to the industry.