Why Your Freight Broker Should Sign a Non-Compete
Peace of mind is one of those precious commodities that’s difficult to come by and even harder to guarantee. In the world of freight brokers, agents, shippers and carriers, peace of mind can serve as a welcomed constant amid a flurry of variables.
If you’re considering working with a freight broker, getting the company to sign an iron-clad non-compete is one of the best ways to find peace of mind in a sometimes tumultuous industry. Protecting your clients should be a priority not just for you, but for your broker as well.
A non-compete, non-disclosure document such as this one is simple yet powerful, stating the purpose and details as clearly as possible and emphasizing the interests of freight agents.
Compared to the few minutes it takes to review and sign a non-compete document, the impact is substantial. The benefits of a well-crafted non-compete include:
- Protection against taking or transferring brokers, and against jeopardizing an agent’s business
- Guaranteed right to take their business with them when the partnership ends
- Assurance that the agent has sole ownership of his or her business; no other entity has a prior right of ownership or shared ownership
- Protection of an agent’s business from the company’s internal brokerage and/or associated entities within a specified period of time after the partnership ends
- Mutual agreement that the agent and broker will not jeopardize each other’s business during their business relationship and afterward, for a specified period of time
- Monetary compensation if the non-compete agreement is breached by either party
Unwillingness by a freight agent or brokerage to adhere to guidelines such as those listed above raises questions about their intentions and integrity. Respect should go both ways in any relationship — and the agent-broker bond is no exception.
At Freight Tec, we sign a non-compete every time we partner with a freight agent. It’s a small but important component of building peace of mind.