Nunes had to spend thousands to put a stop to it, and eventually came to a settlement months after she left. As a result, Blo has a new agreement in addition to a non-compete that is a restriction for soliciting clients. “They cannot solicit or do business with anyone who has done business with Blo,” says Nunes. “They are forbidden to serve our customers, and my attorney tells me that will hold up better than a non-compete.”
Nunes has had three stylists violate the radius (9 miles) in his non-compete, which he was successful in stopping. But attorney fees add up, so Nunes continues to be diligent in updating his agreements to stop situations like “Heidi’s” in the future. “It’s very dif cult to prove liquidated damage,” he says. “And you can never get attorney fees back.” Modern Salon and Spa has always had a non-compete, which Hafezi kept in place after the walkout. Most of the stylists who left him had been with the salon for 10-20 years, so he was respectful of their decision to do their own thing. However, he did change one major item in his contract when he changed his training program to eight months from two years. “If they leave us within the rst year on the ‑ oor, they have to pay us back the cost of their training, which is $10,000,” he says. This is a major commitment for a stylist to make, but Hafezi knows his training is valuable and is not willing to risk stylists going through it and immediately taking their knowledge elsewhere.
Snetman found her non-compete agreement at Jón Alan to need some tweaking after her walkout. The radius was only five miles, which was not enough. “We went to 10 miles and went from one to two years,” she says. She also realized she could not chance a stylist going across the street and opening a salon. Jón Alan also has a training agreement that states the stylist owes 75 percent of training fees back to the salon if they leave within the rst year. That percentage goes down in the second and third year. Now, with a re-energized team and new policies in place, Snetman can look back with a new perspective. “I encourage others to look at their business as a business—understand the players are going to change, like an NFL team,” she says. “Players come and go every year, but the franchise itself remains strong.” Hafezi also feels he’s back on track and is gearing up for the next 10 years to be even more nancially strong. “The most important factors are customer service and quality of education,” he says. “It starts with the leadership team, directors and management. I’ve come to the conclusion that the life cycle of a stylist is ve to seven years. So that’s how we’ll look at our business in the future.”