The company that I contract my home care aide from has split from the original company and is changing to a new company name and is getting a new state license number. Territory and ownership are going to be different also. Are previously negotiated contracts still valid? I am interested in both mine and my aide's contracts - especially the non-compete clause. The company is part of a franchise.
1 Answer from Attorneys
Unless the new company agrees to an assignment of your contract from the original company, they won't be bound by that contract. Typically what happens in these situations is that the new company solicits the customers in an effort to get them to go with the new company, while the old company does the same in order to keep their customers. As for your aide, their non-compete clause's enforceability is dependent on its scope and terms--if it's too broad, both in terms of the geographic area and the length of time, it could be ruled unenforceable in a legal proceeding.
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