Is it legal for a client /student membership contract to contain a non-compete clause?

A covenant not to compete is normally required only of employees. I cannot see how a school can enforce such a requirement on students or customers. I also have a very hard time comprehending what is so proprietary about martial arts. Most of the skills taught date back many , many years and could not possibly be considered subject to trademark infringement. If you did open a school I could see your school being sued for breach of contract. Without looking at the text of the agreement, I suspect no court in NYS would enforce it. You might find my legal guide on selecting and hiring a lawyer helpful. You might find my legal guide on Is it Legal? Is it Illegal? helpful. You might find my legal guide on the understanding the different court systems helpful. You might find my legal guide on legal terms used in litigation helpful (Even if you are not filing a lawsuit this information can be useful). You might find my legal guide on commercial litigation helpful. . LEGAL DISCLAIMER Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information about this issue.

A non-compete contract attempting to bind students/members of a martial arts facility would never be binding. These contracts are for employees, and are given in consideration for salary and benefits, and here nothing is given in exchange for this restriction. Also, New York courts are relatively intolerant of these restrictions for employees, and if enforceable at all, are likely to be limited in duration and in geographic scope. An agreement to bind a non-employee from ever teaching a similar martial arts anywhere at any time could not be enforced. Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

Most employment contracts contain some variation of a non-compete clause but whether or not the clause is enforceable would depend on many different things. You should have the contract evaluated by an attorney before signing it.