Open Question: Is competing with your Dojo / Dojang / School a breach of Loyalty?

Here is the hypothetical: Let’s say you spent years training at a local martial arts school, and eventually decided to move on. You gave notice to your instructor (lets say a master instructor, not a regular instructor or a grand master) that you would no longer train with him/her. You know that your instructor does not consider you qualified to be an instructor. Also, your school moved a few years ago, about a mile, and the location it used to be at is currently vacant and available. Would it be dishonorable to start up your own school there? Would it be dishonorable for you to contact other students that you know from your old school (that no longer practice at the school) to try to get them to train at your new school? What representations do you think would be honest and acceptable to state to potential former students of the original master instructor? What representations do you think would be acceptable to state to potential new students you’ve never met before? Any other thoughts?