What is the effect of RCW 49.62.060 on the Amerispec Inspection Services Franchise Agreement in Washington?
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, RCW 49.62.060 addresses the enforceability of noncompetition covenants in Washington state. Specifically, a noncompetition covenant is void and unenforceable against an employee of an Amerispec Inspection Services franchisee if the employee's annualized earnings from the franchisee do not exceed $100,000 per year, an amount that will be adjusted annually for inflation.
Additionally, the FDD states that a noncompetition covenant is void and unenforceable against an independent contractor of an Amerispec Inspection Services 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.
Therefore, any provisions within the Amerispec Inspection Services Franchise Agreement or related documents that conflict with these limitations on noncompetition covenants are considered void and unenforceable in Washington state. This addendum clarifies the application of Washington law to the franchise agreement, particularly concerning the enforceability of non-compete clauses with franchisee employees and independent contractors.