What is the minimum annualized earnings threshold for an employee of an Aira Fitness franchisee for a noncompetition covenant to be enforceable in Washington?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
t will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provision contained in the franchise agreement or elsewhere that conflicts with these limitati
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a noncompetition covenant is void and unenforceable against an independent contractor of an Aira Fitness franchisee in Washington State if the independent contractor's annualized earnings from the party seeking enforcement do not exceed $250,000 per year. This amount will be adjusted annually for inflation.
This means that if an Aira Fitness franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning more than $250,000 annually (adjusted for inflation). If the contractor earns less than this threshold, the non-compete agreement is not legally enforceable. This provision is based on Washington State law (RCW 49.62.030), and any conflicting provision in the franchise agreement or other documents is void and unenforceable in Washington.
This information is crucial for prospective Aira Fitness franchisees in Washington because it clarifies the limitations on non-competition agreements with independent contractors. Franchisees need to be aware of this earnings threshold to avoid drafting unenforceable agreements and to understand the legal restrictions on their ability to prevent independent contractors from competing with their Aira Fitness business after the contractual relationship ends.