Our small studio was in a neighboring town and our artistic director was actually teaching at another studio too, in order to supplement her income. That larger studio had a new owner (non-dancer)and the parents and students were very unhappy. A group of parents approached us about opening a studio in this same city. That had been a long-term goal and plan but when 100 people come to you, asking you to do this, and them searching the area for a good space, one has to take the opportunity.

Additionally, several of our parents are attorneys and one of them is actually our landlord. He specifically asked if our director had signed a non-compete clause at her part-time employer. No, she had not, and it was a good thing. It is enforcible in our state.

Best to ask an attorney in your state before making any decisions. Spend a bit of money and let the knowledgable ones write up a binding contract for you if that's what you need.

And, yes, one really does reap what she sows. The not-nice studio owner appears to be struggling but she did it to herself. Prayerfully, we will not go the same route as she.