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Question for everyone...contracts...
Hi Ladies!

I've been working at a salon on Saturday's for over a year and just gave notice to leave the end of August The owner is okay with that, I was an employee, just not busy enough to justify a 70 km (return) trip to the salon once a week. She understands as there were over 100 nails clients when the previous owner sold the salon to her. Now there are just a handful and while there may be a number of reasons for that she just learned the previous owner of the salon - who signed a contract restricting her from operating a business within 50 kms for two years - has set up shop in the same town, instructing on nails, selling nail products and doing clients. She sold the salon one year ago last May.

The owner just told me this yesterday and is wondering what to do. I asked her how she found out and one hair client mentioned she had her nails done by this former owner at her home (located in the same town and definitely within 50 kms!)! The current owner is suspicious she may have downloaded her client list and contacted them all, which may partly explain the disappearance of most of the previous clients.

I told her it appears the former owner is clearly in breach of her contract and she may be able to have a "cease and desist" order issued. But I don't know very much about this sort of thing.

Do you ladies have any thoughts? Suggestions???

Thanks ladies! I'd appreciate any ideas you might have..!!!!

Nail Sculptress
Edmonton, Alberta
That is a really tough thing to deal with. On one hand there is a no compete contract which is to be upheld and on the other hand, now that the clients are going there, you cannot stop them from doing so. I would say if its that important a settlement of lost wages from breach of contract may be in order.
Thanks Sobeit!

Actually it is very important to the current owner as she has had a series of things occur and as she put it yesterday...this is the last straw for her!

When she took over the salon it was a nails and esthetics the focus has shifted to hair, massage and then nails and esthetics...waxing, facials and whatnot...she has also done extensive renovations including moving the pedicure chairs to the old hair area and hair up to the front. That involved extensive plumbing and she ended up bringing the piping etc up to code - that has lead to issues with the landlords who won't shoulder some of the cost...and there were a number of things that came to light after the sale...towels that were hidden in the back that were nothing more than just threads...cracks in the footrests on the pedicure chairs and such...

Add to that she has not been able to get another hair stylist after one who brought in a tonne of business left to move away. And now I'm leaving....So I think she's getting increasingly frustrated...most of what has occurred she can deal with, but the knowledge that the previous owner may have sold the salon, taken her client list and set up shop despite the restrictions of her contract is really a major blow for her...

I'd just like to be able to provide her some suggestions or ideas on what action to take if any and how to pursue it.

Has anyone else been in this position or one similar?

Thanks ladies!

Nail Sculptress
Edmonton, Alberta
She should just contact a lawyer. What else can she do? She can't stop clients from going there, but she may be able to "encourage" the previous owner to abide by the contract or else go to court and be forced to pay damages is the court makes a judgement against her.

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