Will the earnings thresholds for non-competition covenants related to an Amerispec Inspection Services franchise in Washington be adjusted for inflation?
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 Amerispec Inspection Services's 2025 Franchise Disclosure Document, the earnings thresholds related to non-competition covenants in Washington State will be adjusted annually for inflation. Specifically, for an employee of an Amerispec Inspection Services franchisee, a noncompetition covenant is void and unenforceable if the employee's annualized earnings are less than $100,000 per year. For an independent contractor of an Amerispec Inspection Services franchisee, a noncompetition covenant is void and unenforceable if their annualized earnings are less than $250,000 per year.
This means that if a franchisee is operating in Washington, the enforceability of any non-compete agreements with their employees or independent contractors will depend on whether those individuals meet the specified earnings thresholds. These thresholds are not fixed and will change over time to account for inflation, potentially impacting the scope and enforceability of non-compete agreements.
Amerispec Inspection Services franchisees in Washington should be aware of these regulations and how they affect their ability to enforce non-competition covenants. They should regularly review the updated earnings thresholds to ensure compliance and consult with legal counsel to draft agreements that align with current Washington law. This is particularly important for managing relationships with both employees and independent contractors, as the earnings thresholds differ between these two categories.