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Non Compete Agreement

A Non-Compete Agreement Template helps businesses stop employees or partners from working with direct competitors for a set period after leaving. Use this free, ready-to-edit template to outline restricted activities, time limits, and geographic boundaries. Simply fill in the blanks, download, and get it signed in minutes.

What Is a Non-Compete Agreement and Why Do You Need One?

A Non-Compete Agreement is a legal document that restricts an employee, contractor, or business partner from working for a competing business or starting a similar business within a certain time period and geographic area after leaving a company. It's commonly used to protect trade secrets, client relationships, and specialized training a business has invested in, making sure a former employee doesn't immediately take that knowledge to a direct competitor. Without this agreement in place, businesses have very little legal protection if a key employee leaves and joins a rival company the next day.

Why Use a Ready-Made Template Instead of Writing One Yourself

Drafting a non-compete agreement from scratch can be risky, since the terms need to be reasonable in scope, time, and location, or courts in many states may refuse to enforce it entirely. A ready-made Non-Compete Agreement Template already includes the essential sections — restricted activities, duration, geographic scope, and consequences of a breach — so you only need to add your specific business details. This saves time, reduces the risk of writing an unenforceable agreement, and gives your business clear legal protection when key employees or partners leave.

Who Should Use This Non-Compete Agreement Template

This template is useful for small business owners hiring employees with access to sensitive client information, companies bringing on sales staff who build direct customer relationships, and business partners or co-founders who want to protect the company if one person exits. It's also useful for businesses in competitive industries like technology, consulting, and healthcare, where employees often gain specialized knowledge that could easily benefit a competitor. Because enforceability varies by state, this template works best as a starting point that can be adjusted to fit local laws.

How to Fill Out and Use This Non-Compete Agreement Correctly

Start by adding the full names and contact details of the business and the employee or partner signing the agreement. Next, clearly describe what activities are restricted, such as working for a direct competitor or starting a similar business in the same industry. Add a specific time period for how long the restriction lasts, typically six months to two years, along with a defined geographic area where the restriction applies. Include consequences for breaking the agreement, such as legal action or financial penalties. Finally, both parties should review, sign, and date the document, and it's a good idea to have it reviewed by a local attorney to confirm it complies with state-specific non-compete laws.


How to Use Agreed Templates

Start With the Template

Open the Product Agreement Template in your Agreed workspace and begin with a ready-to-use agreement structure.

Customize Agreement Details

Add or edit product details, responsibilities, pricing, deliverables, timelines, and other terms to match your agreement needs.

Review, Sign & Manage

Send the agreement for review and approval, collect signatures, and manage the completed agreement securely in Agreed.

Frequently Asked Questions.

Everything you need to know about Agreed. Can't find what you're looking for?

No, enforceability varies significantly by state. Some states heavily restrict or completely ban non-compete agreements for most employees, so it's important to check local laws before relying on one.

Most non-compete agreements last between six months and two years, since courts are more likely to enforce shorter time periods that are considered reasonable for protecting business interests.

No, a properly written non-compete should only restrict specific competing activities within a reasonable geographic area, not block someone from working in their profession entirely, or it risks being thrown out by a court.

If an employee violates the agreement, the employer may pursue legal action, which can include seeking a court order to stop the competing work or requesting financial damages for losses caused.

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