Yes, typically Sellers agree not to compete with the business after the sale. Customary non-compete terms vary with each business and among industries, but often include: People: Non-Competes always cover the Seller(s) and often include any family members involved in the business. Duration: The term varies, but frequently lasts 3 to 5 years. Industry or niche: You can restrict Sellers from competing directly with you, but it is difficult to prevent a Seller from starting a business in a non-competing industry or niche. Geography: Non-Competes typically specify a geography where the Seller may not compete. The term largely depends on the area currently served by the business, and can range from small (ex: restaurants, a few miles) to large (ex: manufacturers or distributors often serve counties, states, or the nation).   Non-Compete terms must be deemed reasonable to be enforceable in many states; complex ones are typically written by attorneys.