As a condition of the sale of 295 locations, Rent
Way has agreed to sign Non-Compete agreements for those markets.
Sources tell RTO Online that the Non-Compete agreement has 2
main stipulations. Rent Way agrees to not open stores for 7
years, or, within 7 miles of the locations being sold. In some
markets, both stipulations will apply.
A 'Non-Compete' agreement is a contract that restricts
participation in a certain market(s) by a company or individual
under specific circumstances. Employers often require employees
to sign a non-compete agreement to deter them from quitting to
join a competitor. In this case, Rent a Center is protecting a
significant investment in time and money in the various markets.
In recent years, courts have been a bit lax in enforcing
non-compete agreements with employees. However, agreements
between companies are generally honored and enforced by the
Unconfirmed reports state that bonuses from $500 to $1500 will
be paid to Rent Way managers as an incentive to 'stick around'
through the transition.
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only independent source of news for the rent-to-own, rental-purchase,
lease-purchase trade. RTO Online (Rent to Own Online) represents the choice
of the entire RTO Industry for trusted information, as it happens.
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