Skip to content

Question

Will an exclusivity clause stop me from working with other clients?

A partner wants me to agree to an exclusivity clause, but I'm worried it might block me from working with other clients. I don't want to get stuck in a deal that hurts my growth — what are the risks?

Rocket copilot

Answer

Yes, an exclusivity clause can limit your ability to work with other clients. It usually means you agree not to work with certain other clients, often competitors, for a set time. 
 

The risk depends on how broad the clause is and how much it restricts where and with whom you can sell your products or services.

What business risks can exclusivity create?

Common risks include:

  • A smaller client pool, which can reduce sales or project opportunities.
  • Slower growth if the restriction covers a wide industry, region, or time period.
  • Dependence on one partner, which increases risk if the deal ends or underperforms.

Exclusivity can limit your flexibility to expand into new markets or build a diverse client base.

What makes an exclusivity clause more risky or easier to enforce?

Enforceability often depends on whether the clause is "reasonable." Courts may look at how long it lasts, what geographic area it covers, and how broad the restrictions are. Courts also often evaluate exclusivity provisions under contract law principles.

Very broad, one-sided clauses may be harder to enforce, but that can vary. The exact wording matters, so you should consider how it affects your business over the next few years, not just today.

What to do next

  • Read the clause closely for time, territory, and scope.
  • List which clients or markets it would block.
  • Consider how dependent you would be on this one partner.
  • Ask to narrow the clause if it limits growth too much.

What to consider in your specific situation

The general ideas above apply to many businesses, but your situation may be different based on the exact deal and your goals. Here are some things that might affect your situation:

  • The type of work you do and how easy it is to find similar clients in your industry.
  • How broad the clause is in terms of competitors, industries, or locations.
  • The length of the exclusivity period and whether you can renew, exit early, or renegotiate.
  • Any minimum payments, volume commitments, or performance promises tied to the exclusivity.
  • The laws in your state or country around exclusivity, non-compete, or restraint of trade.
  • How much of your total revenue would come from this one partner if you sign.

Since every situation is different, consider getting more information through Rocket Copilot, or a Legal Pro.

Published on 04/06/2026Written by Rocket Lawyer editorial staffReviewed by Legal Pros

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.

Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.

Need help navigating legalese in a contract?

Scope of work, exclusivity, and relationship clauses rights can be confusing — and getting them wrong can cost you. As a Rocket Lawyer member, you’ll have support at every step:

  • Rocket Copilot Q&A for instant legal information
  • Ask a Legal Pro for human responses within a business day
  • Document insights, Contract Review, and other smart legal tools

Get legal confidence for less than the price of your daily coffee.

 

Explore more about relationship and scope-related clauses

Explore Rocket Lawyer solutions that can help you move forward

Whether you’re drafting agreements, reviewing contracts, or starting a business, Rocket Lawyer offers expert support to make legal tasks easier and more affordable.

Disclosures

  1. This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.