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is it ethical to open a studio near previous employer?

  • 05-16-2008 9:04 PM

    is it ethical to open a studio near previous employer?

    I am looking to open up an intimate studio about a block and a half away from my current employer. This employer is a gym and it has a small dedicated space for reformer classes and privates. There is no other equipment and probably will not be due to the owners unwillingness to purchase anything at this time. I have so many great ideas and have only gotten a wall put up anytime I suggest them. There is a chain of commands that we need to go through in order for anything new to occur, and I don't see the light at the end of the tunnel. I am very passionate about Pilates and integrated movement. I see a great oppurtunity for a studio in the same town/village I currently work in and do not plan on approaching or soliciting any of my current employers clients. I am wondering if my studio offered more and different types of session/ classes would it be ethical for me to open close to this facility? Any comments would help... thanks!Big Smile

  • 05-19-2008 11:37 AM In reply to

    Re: is it ethical to open a studio near previous employer?

    Hopefully we'll get some responses from some pilates professionals and our Master Trainers, but here is advice we've heard from others with this issue.

    This can be a really thorny issue, and it would be really hard to say whether it ethical or unethical with just a little bit of background information.  It helps that you are not going to try to solicit or take away any of your current employer's clients. While it may make it a little more difficult to get started, it will hopefully show your current employer that you are being honest in your business practices and may help you maintain some relationships there, especially if you are offering services that they themselves aren't interested in providing. 

    One really important question though would be whether you signed any sort of non-compete agreement with your current employer.  The terms of such agreements can vary, but if you did sign such an agreement you may be restricted from opening a competing business for a certain period of time after ending your employment there. 

    I'm sure you are trying to keep your costs down but if you're contemplating starting a new business, you may want to contact an attorney anyway and discuss this and other issues you will have to consider, such as liability issues and insurance.

    Lastly, take any advice you get here or from anybody with a grain of salt.  Each situation is unique, and you should use your best judgment and common sense to keep you on the right track.

    Jeremy Garretson, Peak Pilates Web Developer
  • 05-19-2008 12:35 PM In reply to

    Re: is it ethical to open a studio near previous employer?

    I appreciate your advice. I have not signed a non competitve agreement. I am going to speak with my manager after I know for sure I am getting a space and hopefully all will go well? I am so passionate about Pilates and hope that helps to make my studio a success. I will keep you posted. Thanks!

  • 05-19-2008 3:05 PM In reply to

    Re: is it ethical to open a studio near previous employer?

    This is indeed a sticky situation! You are wise to consider the ethical side of the equation. I have been on both sides of this coin. I have worked in a gym setting and left to grow a business of my own. However, it was in a nearby town. Opening right down the street may indeed create conflict.

    Before you rush out the door, consider if you have really pursued other options. Have you gone to management with a plan to maybe grow the studio as profit center for them? Could you do a profit sharing venture with you in charge? If you really want to go it alone in competition, be honest and upright. Try to keep things as friendly as possible. There is bound to be gossip and you want to rise above it. Don't openly solicit any of your current students. If negative talk comes back to you - rise above it.

    If asked about their Pilates studio in comparison to yours, be professional and simply say, "I can speak to what we do here at Studio X. I recommend you ask Studio Y about their programs and policies."

    Good luck with whatever you do.

    Zoey Trap, Peak Pilates Master Trainer
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