".... I doubt this issue would have come up with AAA if there had not been some monetary issues (loss of the zen group, loss of some students, etc.)."
Unfortunately that is not the case. The headquarters dojo of AAA has gained and lost a number of teachers and groups at the main office that that is not really the case. But that is over....
I have heard people complain that one of the "problems" that Mr Moore has "created" was his openning of a dojo nearby the AAA headquarters. And one solution in instances such as these, it was suggested, was to have in a contract a prohibition against openning a close dojo when you leave. I think that the idea of a non-compete or radius clause would not work at all in an environment such as this.
An instructor, I think, is rarely under contract with a organization to teach martial arts. Usually the instructor is a student that has been with the group for a long time, and has sort of graduated into teaching as a consequence of his/her promotions in rank. Usually instructors in an orginazation are teaching voluntarily - AND they are paying the organization mo dues in order to train as well.
In business you usually sign a non-compete in order to protect the company from losing business, either from the employee taking business away when he/she leaves, or to protect co trade secrets (prohibiting an employee from using co knowledge specific to the co or from using knowledge of a specific co product when gone to take business away). In many cases the non-compete contract will allow an employee to leave and take a job with a competing co, provided the competing co pays the original employer a fee for "stealing" the employee.
There are not, really, "trade secrets" in teaching a martial art that are specific to an organziation, nor does not involve a specific physical product.
In the business world, you pay an employee from monies earned while doing business, either from your products or services. The employee does not pay the employer - the employer pays the employee for helping the co. make money. In martial arts, however, the employee (the teacher) in most cases is paying the employer (the martial arts org) to study and volunteers his/her teaching services. The product provided a martial art is not a physical one - that is it is not a computer, for example. The product offered is not only physical training but mental training as well. And THAT you can get at ANY martial art training facility. To have a non-compete clause or a radius clause in a "contract" would not only be unenforceable but it would make your org a laughing stock - I hope that no serious martial art org does not do this, if at least to avoid being the subject of another "Anonymous" thread ....