What is the minimum 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 Amerispec Inspection Services's 2025 Franchise Disclosure Document, a noncompetition covenant is void and unenforceable against an employee of an Amerispec Inspection Services franchisee in Washington unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation. This rule is based on RCW 49.62.020, a Washington state law.
This means that if an Amerispec Inspection Services franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning more than $100,000 annually (adjusted for inflation). If the employee earns less than this amount, the non-compete agreement is not legally enforceable. This protects lower-earning employees from being restricted in their future employment opportunities.
Additionally, the FDD states that any provisions in the Franchise Agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington. This ensures that the state law takes precedence over any conflicting terms in the franchise agreement, further safeguarding the rights of employees and independent contractors in Washington. Franchisees in Washington should be aware of this law and ensure their employment agreements comply with it.