Karaoke Forums

I got the old heave-ho from my regular Friday/Saturday night show. New owner came in and already has his own karaoke/DJ guy at his other bar. I kind of expected it (I've never survived an ownership change). Anyways, there's some sour grapes there now. I was canned by text message. Nevertheless, I've got my people telling me that they'll go wherever I go. So, I went across the street and booked that place. Start date is next week.

Even though there are some sour grapes involved, I have to make a living. I have an impending divorce (with one child) and another child from another woman. There's just no way I can give up karaoke when my people are making it clear that they will support me at the new venue.

But maybe it's time for me to get out of the karaoke side of things. I'd kind of like to, but my income requirements simply do not allow me to do so.

But, what if I offered a non-compete agreement to the coward bar owner that fired me? I give the guy credit in that he seems to know what he's doing when it comes to running a bar. I highly doubt that I'd put him out of business, but I know for a fact that we'll end up splitting the pie each and every week. So, it's not near as lucrative for both of us to be competing for the same customers. Someone needs to bow out. It's highly unlikely that either one of us will.

But I will. For $10,000. And for $15,000, I'll include his other bar.

Why would it be wrong of me to make such an offer? We sign these agreements sometimes as a condition of employment. And often times, severance packages are contingent upon a displaced worker signing one. The only difference is that usually, the employer initiates this agreement. So, why would it be wrong for me to initiate it?

I'd love to hear your thoughts and whether or not it would be legal.

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I'm not a cheerleader, but I paid for my pom poms with my own money!

Do you think that $10k is a joke? Consider this:

In my community, my best guess is that the old bar stands to make an average of $1,500 per night in revenue. All costs other than inventory is considered fixed. So, using a generous 30% for variable costs, the contribution margin is 70%. In other words, 70% of the $1,500 ($1,050) will be available to pay for labor, lights, and the note on the bar.

If I'm across the street, their revenue might go down by 30%. So now, instead of having that $1,050 to pay fixed costs, they'll only have $735. So, for every night I'm across the street, it'll cost them $315. For every night, that's over $16,000 per year. Or, $32,000 if you factor 2 nights.

If he got 5 years for $10k, I'd say it would be worth every penny.

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I'm not a cheerleader, but I paid for my pom poms with my own money!

It would be vary legal but not too good for your new place. I'd like to say what have you got to loose, But you would have to pay more to your soon to be ex wife if he made a one time payment.

I'll say he'll fall over laughing at you. He's got as karaoke guy who brings a crowd to his current bar, why not assume he'll do the same at his new place. I think he's willing to gamble on that versus paying you money. I'd say go to the other bar, get to work building a business over there and take the income the old fashioned way. The worst thing a KJ (or DJ) can assume is that a big crowd will follow him around, rarely ever happens and makes you look silly when you claim you can do that. Most people who frequent a given bar on a regular basis, like the bar, not the entertainer. Many of them would be there if nothing was going on at all other than drinks being served. This is just my opinion.

And I respect your opinion. I think you are right that he'll laugh, and I really don't expect him to pay. As far as people following me, not all will, and my guess is that a few will be very loyal, some will go back and forth, and some will not follow. I'll bet it's an even split, which means on any given night, I'll have my faithful 1/3, plus half of the flip floppers, plus random people who drive by our bar and see the traffic.

And his karaoke show at his other bar is unsuccessful. The guy who runs it is on on salary (so to speak) and he covers all sound, lighting and music for the bar (it's a large dance club that offers karaoke one night per week). So, it doesn't matter to the owner if the karaoke is successful or not because it's just one part if the package). In other words, he's not paying $150 a night for karaoke, he's paying $xxxx per week for all sound and light services.

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I'm not a cheerleader, but I paid for my pom poms with my own money!

Aha you left that part out about the other guy. I say out market him, bring as many people over as you can, do a quality show and you will become the place to go.

1) It's WAY too late in the game to offer a non-compete, so kick his a$$.

2) Depending on the state. it could cause YOU problems. Here in NJ, if someone asks for a "non-compete" agreement they will immediately be sued for restraint of trade.

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"No Contests, No Divas, Just A Good Time!"

" Disc based and loving it..."

For that matter, offer 10 bars the deal that you won't run a karaoke show and take their business away, make $100,000 dollars. That makes no sense to me at all. If the other bar's karaoke effort stinks anyway and they don't really care about it, an average show should be able to be competitive and take the business from them. I have competitors who try to pay a bartender or waitress to run their trivia, reading off index cards, questions that they downloaded for free off the internet and we take the majority of that business from them every day. A professional show of any type can usually take the numbers from a half-ass attempt at it.

This is a much different situation than blindly offering random bars non compete agreements. This is a small town. I've cultivated a following of both singers and non singers alike. I've done their weddings, their loved ones funerals, their fundraisers, their parties and the like, for nothing or next to nothing. I've attempted to reward their loyalty whenever possible because I appreciate them. And if that sounds like a friendship, that's exactly what I'm going for. I've made a lot of friends, good friends here in town. For some dude to come in and assume that the show is his to do as he pleases with is just a little presumptuous on his part. I created this show. I started it across the street, took it to this bar when the other bar screwed around with my pay. Against the odds, I turned that bar into a success..... From literally nothing on Fri and Sat to regularly doing $1500 a night, 9 months out of the year. All this while they served the weakest and most expensive drinks in the county. And the bartender stole from customers - regularly.

The bar across the street was sold shortly after I left. The owner could no longer handle the losses that accumulated after I left. The new owner has been trying to pry me away since day one. Even he knows that I'm the reason why karaoke in this town succeeds. He hired several different hosts, including one very good one. But even he couldn't wrestle my people away, even with contests and very generous prizes.

His food was better, his drinks cheaper and stronger, way more attractive bartenders, better service, nicer place, etc. Doesn't take a rocket scientist to see that I must be the reason.

I've gone into other markets and been on the other side of this, too.

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I'm not a cheerleader, but I paid for my pom poms with my own money!

But Joe, it sounds like Troy is offering a Non-Compete contract in reverse. He is stating that, for the right price, he would be willing to get out of the business (at least, that is how I am interpreting the quote below).






I have a question for Troy tho...


If you were to get this ex-boss of yours to sign such an agreement with you, what would you live on for income after that? 10K or 15K only lasts so long.

If you are agreeing to not compete against that Bar (possibly 2 Bars), then anywhere else you might host Karaoke could be considered competing against that Bar (whether it be across the street or 10 miles away). You would be taking Customers away from his establishment/s, and that would be considered competing. You said it yourself...

First, I would never agree to not do karaoke anywhere. There would have to be a radius attached to it. The radius could be 2 miles from his bar on non karaoke nights, and as much as 10 miles on his karaoke nights.

But I really don't want to do karaoke, but financially I have to. If I were to enter into an agreement, I'd finish my last few classes for my Bachelors, and I'd change my minor to software development. And, my GI Bill would give me about $1k a month to live on while I am in school. What has stopped me from doing that is the fact that I dropped my classes a couple years ago and now I have to pay $1500 from my own pocket before I can go back. And, I haven't had the $1500 to spare.

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I'm not a cheerleader, but I paid for my pom poms with my own money!

Why not train some people to do your shows and semi-retire filling in as necessary?

If you were worth $10-15K a year in extra business, the bar owner wouldn't have fired you by text message.

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C Mc
KJ, FL

You're right. He didn't feel I was worth anything. That was his mistake.

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I'm not a cheerleader, but I paid for my pom poms with my own money!