What is the annualized earnings threshold for an employee of an Amerispec Inspection Services franchisee in Washington for a noncompetition covenant to be enforceable?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
ch as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
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- Transfer fees are collectable to the extent that they reflect the Company's reasonable estimated or actual costs in effecting a transfer.
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 4
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services FDD, a noncompetition covenant is void and unenforceable against an employee of a franchisee in Washington unless the employee's annualized earnings exceed $100,000 per year. This amount will be adjusted annually for inflation. This means that if an Amerispec Inspection Services franchisee in Washington wants to enforce a non-compete agreement with an employee, that employee must be earning more than the annually adjusted threshold of $100,000.
This provision is based on Washington state law (RCW 49.62.020), and any conflicting provisions in the franchise agreement are void and unenforceable in Washington. This ensures that the franchisee's agreements comply with Washington's regulations regarding non-competition covenants.
For a prospective Amerispec Inspection Services franchisee in Washington, this information is crucial for understanding the limitations on non-competition agreements with employees. Franchisees need to be aware of the earnings threshold and how it affects their ability to restrict former employees from competing with their business. They should also stay informed about annual inflation adjustments to this threshold to ensure ongoing compliance.