The Villages top sales official said she fears “significant and irreparable” harm if the sales representatives selling dream homes are no longer bound by non-compete agreements.
Jennifer Parr, vice president of sales and marketing for The Villages and president of Properties of The Villages, has offered a 14-page declaration in support of a lawsuit against the Federal Trade Commission.
The Villages is suing the FTC in a bid to protect its 24-month non-compete ban on former Properties of The Villages sales associates from selling real estate in The Villages. Earlier this year, the FTC issued a final rule to promote competition by banning non-compete agreements across the nation.
Parr’s declaration makes clear how vital the non-compete agreements are to The Villages’ sales strategy.
“In contrast to some developers, my family has adopted a long-term model for The Villages, wherein we maintain a presence in the community. We view ourselves as place makers dedicated to creating the best possible experience for our residents—each of whom we view as a customer for life. It is our one and only community, and it is our home,” Parr said in the declaration.
She said relationships have been key to the success of The Villages.
“We base this approach on the distinctive hospitality mindset of my parents—Gary and Sharon Morse—whose values continue to drive every aspect of our family business today. By embracing this approach, and through decades of hard work and dedication, The Villages has grown from a small mobile home park with access to free golf to a bustling community of over 145,000 residents,” she said.
Parr described the extensive three-month training program for new sales associates which allows them to “gain access to confidential business information—including current and future listings and prospective clients’ contact information.” Sales associates have targeted connections rather than simply “knocking on doors,” according to Parr’s declaration.
She said “once training is completed, Sales Associates typically are eligible to work shifts at one of The Villages’ sales centers, to answer customer phone inquiries, or to work at ‘showcases’ for newly built houses.”
Sales associates also enjoy access to the Properties of The Villages group benefits plan as well as eligibility to enroll children at The Villages Charter Schools.
But it all comes at a price. Sales associates must sign a non-compete agreement that bars them from selling homes in The Villages for 24 months if they leave Properties of The Villages. Her declaration included a current map of The Villages which is considered “the restricted area.”
Parr, who went to federal court in 2021 in a battle with former sales associates who defied their non-compete agreements, said the new FTC non-compete rule would inflict “significant and irreparable” harm on The Villages.
“If the Non-Compete Rule goes into effect, I understand that the non-compete clauses of POV’s existing agreements with Sales Associates would be prohibited. Specifically, I understand that the Non-Compete Rule generally prohibits non-compete agreements absent narrow exceptions that POV’s Sales Associates would not qualify for (including a “senior executives” exception that would not apply because Sales Associates are not in “policy-making” positions). As a result, POV will no longer be able to enforce the non-compete clauses in its contracts with current Sales Associates. Additionally, I understand POV will need to notify current and former Sales Associates that the non-compete clauses in their contracts cannot be enforced, and POV will be prevented from entering into non-compete agreements with new Sales Associates,” Parr said in her declaration.