What is the minimum annualized earnings threshold for an independent contractor of an Aira Fitness franchisee for a noncompetition covenant to be enforceable in Washington?

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 unless the independent contractor's earnings, when annualized, exceed $250,000 per year. The earnings must be from the party seeking enforcement of the covenant. 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 have earned more than $250,000 in a year from that specific franchisee. If the contractor's earnings are below this threshold, the non-compete agreement is not enforceable under Washington law. This provision aims to protect independent contractors from overly restrictive non-compete agreements when their income from the Aira Fitness franchise is not substantial.

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 rights of their independent contractors. It is important to note that the $250,000 threshold is subject to annual adjustments for inflation, so franchisees should stay informed about the current applicable amount.