Don’t Sign an NDA (Non Disclosure Agreement)
I JUST WANT TO BUY A BIKE!!
Why Do the Other Guys Want Me to Sign an N.D.A.?
There are not many party bike manufacturers or suppliers in this world. The largest manufacturer is located in Europe with distributors in the U.S. There are a few small private manufacturers around, there are companies who operate party bikes and want to sell franchises, and then there is us.
Please consult a licensed professional for legal advice.
Most of the sellers require you to sign what is commonly known as an NDA, but typically includes much more. These NDAs, or Non-Disclosure Agreements usually come with a Non-Compete Agreement and a Non-Solicitation Agreement.
First off, you must understand what these agreements are and then you will understand why they are not used at Atek Customs.
The non-disclosure clause may look somewhat like this:
“Buyer will not use confidential information for any purpose without Seller’s specific prior written authorization, except Buyer may use Confidential Information to perform Buyer’s duties as an independent contractor of Seller.”
In other words, if you buy a bike from distributor Mr. Jim, you can’t tell Mr. Bill his trade secrets unless Mr. Jim lets you. Fair enough. If he goes to the trouble of developing an entire business plan on how to operate a party bike business, he has the right to sell his business plan. But you have the right to use your own brain and develop your own business plan. You don’t have to use his. If you are planning to spend the money on any of the party bikes available on the market, chances are pretty good that you already know what you want to do with the bike.
The non-compete clause may look like:
“During the Restricted Period, Buyer will not directly or indirectly advise, invest in, own, manage, operate, control, be employed by, provide services to, lend money to, guarantee any obligation of, lend Buyer’s name to, or otherwise assist any person engaged in or planning to be engaged in any business whose products, services, or activities compete or will compete in whole or in part with the Seller’s products, services, or activities anywhere in the world.”
After you buy Mr. Jim’s party bike, you can’t have anything to do with anybody who is even remotely associated with the party bike business anywhere in the world. You belong to Mr. Jim and nobody else. In other words, if you buy a Ford, you can’t talk to anyone who owns a Chevy. You can’t have Ziggy’s Auto Repair work on your Ford. You can’t go to a Honda dealership to look at cars. You might not even be able to ride in someone else’s Toyota. This sounds like Mr. Jim has some serious control issues!!
The non-solicitation clause may include something similar to this:
“During the Restricted Period, Buyer will not solicit any supplier, service provider, customer, or other business relation of Seller to become a business relation of Buyer. “
Don’t call anyone Mr. Jim knows. Call only Mr. Jim. You have no brain; you must use Mr. Jim’s brain. You can’t do business with anyone Mr. Jim does business with. You can only do business with Mr. Jim and pay Mr. Jim’s rate. Mr. Jim owns you. There is that control issue again.
At Atek Customs, you will not have to sign any of these types of documents. We want your business, however, we believe that we should earn you business, not force you through legal means. We want to sell you as many party bikes as you want; but we want you to buy them from us because you want to buy them from us – not because you have to.
These legal agreements are intended to limit you and to control you. They breed cynicism and negativity and will cause you to lack trust and optimism. Our goal is to help you soar, to succeed, to be the best party bike company you can possibly be. Atek Customs will not tell you how to run your business. We will not tell you who you can talk to and who you can’t. Who you hire is your business. Where you buy things is your business. We want to build you your own custom bike that suits your needs, not ours. And then we want you to make your business your success.
If we are successful at meeting your needs and giving you great customer service, we don’t need you to sign an NDA. If we need you to sign an NDA to get your business, then we deserve to go out of business!!