Are provisions in the Amerispec Inspection Services Franchise Agreement that conflict with Washington's noncompetition covenant limitations 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, provisions within the franchise agreement that conflict with Washington's noncompetition covenant limitations are not enforceable in Washington state. Specifically, Washington state law RCW 49.62.020 states that a noncompetition covenant is void and unenforceable against an employee, including a franchisee's employee, if the employee's annualized earnings from the party seeking enforcement do not exceed $100,000 per year, which is adjusted annually for inflation.
Additionally, RCW 49.62.030 stipulates that a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee if their annualized earnings from the enforcing party do not exceed $250,000 per year, also adjusted annually for inflation. Therefore, any part of the Amerispec Inspection Services Franchise Agreement that contradicts these financial thresholds and conditions is considered void and unenforceable in Washington.
This means that Amerispec Inspection Services franchisees in Washington are not bound by non-compete clauses for employees or independent contractors earning below these specified amounts. This addendum ensures that the franchise agreement aligns with Washington state law, providing clarity and protection for both the franchisee and their workers. This compliance helps to avoid potential legal disputes and ensures fair labor practices within the franchise operations in Washington.