Protecting Your Pool Business: Understanding Restrictive Covenant Agreements

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Understanding Restrictive Covenant Agreements

Sunflower Pool and Patio store owners know that to stay profitable in the pool industry, it is all about keeping up with the latest and greatest pool products. When you look at your neighbor’s pool and patio equipment, you do a mental scan as you marvel at how great their pool looks, even in the dead of winter. You’re impressed with their sunbathing area, the surround sound deck speakers, the beautiful diving board and awestruck by how lively the pool seems.

Your neighbor’s patio and pool probably has many of your favorite items that you want to install in your own pool. Ever since you noticed that your neighbor’s son is dating your daughter, you and your neighbor almost share thoughts about what they should do to their own pool to take it to the next level. Having a young adult child dating someone from across the street has been easy (so far). You use to just see your neighbors at the annual block party, but now you’re on the same page when it comes to the annual summer upgrade of both your swim areas.

The one thing that will never change this summer is the fact that you can’t copy anything your neighbor does to their swim area. Well, you can, but that comes with severe consequences. Like going to jail or getting sued for millions. Your neighbor may get the city to enact a law that allows them to sue you for copying their products. They could even try to ban you from upgrading your swim area, denying you the chance to have the swim area you always wanted. You’re not all that worried because unlike your neighbor, you have legal protection.

What is a Restrictive Covenant Agreement? Comprehensive restrictive covenant agreements are essential to Sunflower Pool and Patio store owners who may face stiff competition from their neighbors. Think about it-you could spend a lot of time and money upgrading your swim area and lose everything if your neighbor is able to sue you for copying their products. It doesn’t matter if you came up with the design and the concept on your own; you’ll still be paying for it with your neighbor’s money.

For Sunflower Pool and Patio Store owners, it is essential that their restrictive covenant agreements be iron clad. You never know when an attractive stranger is going to come through your door, looking for jobs for a new swimming pool. Often times, these employees are high school graduates or college graduates looking to explore the world through their employer’s eyes. What starts out as a low paying job can quickly turn into multi-million dollar lawsuit.

If you operate a Sunflower Pool and Patio store, you need to know about the importance of maintaining your community’s ability to enforce their restrictive covenant agreements. Next time you have a neighbor who is considering selling their pool, reach out to them and advise them against selling it to anybody who might consider buying a corner view, so they can sell the property to a utility company. This was the fate that befell Jordans and Eric’s Pool Store.

All too often, the believers of the “open door theory” fall victim the business predators who prey on open competition. Make sure that your neighborhood is safe from businesses that are out to destroy competition by using the law and legal documents to keep competition out. It may be too late for Eric and Jordan’s, but you have the chance to be the savior of your street.

In all things legal, having a well-drafted restrictive covenant agreement can save your swim area. Take the opportunity to discuss how to write a well-written contract and restrictive covenant agreement that is in compliance with applicable Kansas law.

To learn more about what is a restrictive covenant agreement, contact your local Kansas attorney and ask for a consultation about how to hire a litigation attorney who can draft a well-written contract for you.