How often is the earnings threshold adjusted for inflation regarding noncompetition covenants for employees of Apricot Lane franchisees in Washington?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
lease or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer
Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, includin
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the earnings threshold for noncompetition covenants in Washington State is adjusted annually for inflation. Specifically, for an Apricot Lane franchisee's employee, a noncompetition covenant is void and unenforceable unless the employee's annualized earnings exceed $100,000 per year. This amount is subject to annual adjustments for inflation.
Similarly, for an independent contractor of an Apricot Lane franchisee, a noncompetition covenant is unenforceable if their annualized earnings are below $250,000 per year, with this threshold also being adjusted annually for inflation. This means that these earning thresholds will change each year based on inflation rates.
This adjustment is based on Washington State law (RCW 49.62.020 and RCW 49.62.030), and any conflicting provisions within the franchise agreement are void and unenforceable in Washington. Therefore, Apricot Lane franchisees in Washington need to be aware of these annually adjusted earnings thresholds when considering noncompetition agreements with their employees or independent contractors.