As a solicitor, am I actually building my own business? Help me please

[BADTROUT]

Check the contract he's offering you and/or non-solicit agreement (if any). If it truly belongs to you, then any notation of a non-solicit should say that you have the right, upon written voluntary termination, to contact the clients you solicited, but not the rest of his book of business.

You would do well to ALSO see his contract with his agency because you would be an extension of him and thereby bound by association to his contact. His agency owns the business unless contractually spelled out, so make sure it's even plausible. That in some ways will be more important than his contract with you because at the end of the day, he cannot give you rights that are not afforded to him in his contract.

 

[MyGenericName123]

Update: I spoke with him on the telephone and he essentially said he will sign off on a decreased do not compete if that's what I need to make me feel comfortable. He said he'd go as low as 1 year if that was what I needed. He said he felt that 1 year is unfair on his side, but he reiterated, "I think this arrangement will work out between us, I'm willing to lower the terms of the agreement to 1 year to show you just how confident I am that you will want to work with me..."

re: a breakaway clause. He said he will sign off on me being allowed to contact and solicit my own clients from a different brokerage provided I put in writing that I take responsibility for the broker of record letter.

with regards to his agreement with the parent company he did send it to me and this paragraph I believe addresses ownership of the book as to stands between him and the parent company.


Voluntary Termination. Either party may terminate this agreement upon written notice.
Upon Termination, Company will allow AGENCY to transfer policies written by AGENCY to another appointment, other than ------------- (I erased this, it said the name of the agency he is currently working for). Upon termination of this agreement,
any new business commissions not previously paid will be paid at the end of the term when commissions
are fully earned and there is no opportunity for charge back of commissions for mid term cancellation.
Service commissions will cease immediately upon termination.

 

[MyGenericName123]

I should note this individual is someone I very much so trust. He's admitted technicalities is not his strong suit and that he's essentially operating on the glass if half full between us and as such if I Need to stipulate the terms of the deal then so be it. I feel extremely confident that he will provide great training and support too.

 

[BADTROUT]

Upon Termination, Company will allow AGENCY to transfer policies written by AGENCY to another appointment,

So you being able to do anything is contingent on his terminating the contract. Not fond of that if you decide to open your own shop at one point.

My best advice on this would be:

1. See in writing that your liability is covered on his E&O

2. I'd look at his WHOLE contract, this snippet doesnt address them parting ways for cause.

3. I recommend FULL disclosure to his Agency. In my agency it would be grounds for immediate termination for cause. Nobody, and I mean nobody represents my agency to a client except me, my staff, and my contractors, period... not some side gig one of my producers starts up.

That said, there are appropriate ways to make this work. Even with him... but you absolutely need to know your E&O liability is covered.

 

[DHK]

The other way to think about it... is to take the position PURELY for the training and the compensation for bringing in the business. Don't assume that you can take business elsewhere, but look at the contracts, etc.

The training is more important anyway. If you're trained, you can find new business anywhere and everywhere. If you're not trained, you won't last long in the business anyway.

 

[MyGenericName123]

I should note this individual is someone I very much so trust. He's admitted technicalities is not his strong suit and that he's essentially operating on the glass if half full between us and as such if I Need to stipulate the terms of the deal then so be it. I feel extremely confident that he will provide great training and support too.

but the first line says "Voluntary Termination. Either party may terminate this agreement upon written notice."

Doesn't this mean I can terminate the relationship as well?

I do have his full contract, he supplied me with that. I have a bit of a difficult time discerning exactly what everything means but I'll continue to look things over and research.

Can't thank you guys enough!

 

[MyGenericName123]

The other way to think about it... is to take the position PURELY for the training and the compensation for bringing in the business. Don't assume that you can take business elsewhere, but look at the contracts, etc.

The training is more important anyway. If you're trained, you can find new business anywhere and everywhere. If you're not trained, you won't last long in the business anyway.

definitely a valid point and worth serious consideration. The common theme I see on this board is that proper training and support early on is invaluable. With him, I know I'll get it.

Thanks a bunch

 

[DHK]

Voluntary termination is the opposite of being terminated "for cause" - such as misrepresenting policies and/or outright fraud.

 

[MyGenericName123]

^^ that part I do understand. I quoted poorly there.

My posting was in response to BADTROUT saying me being able to do anything would be contingent upon him terminating the relationship so I was trying to point out that it does say either party may voluntarily terminate.

sorry for the confusion guys.