In Washington, what is the minimum annualized earnings threshold for an employee of an Apricot Lane franchisee for a noncompetition covenant to be enforceable?
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 Apricot Lane's 2025 Franchise Disclosure Document, Washington state law impacts the enforceability of noncompetition covenants for employees of franchisees. Specifically, pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee of an Apricot Lane franchisee if the employee's annualized earnings from the franchisee do not exceed $100,000 per year. This amount is subject to annual adjustments for inflation.
This provision means that Apricot Lane franchisees in Washington cannot enforce non-compete agreements against employees who earn less than the specified threshold. This limitation is designed to protect lower-income workers from being unduly restricted in their future employment opportunities. Any conflicting provisions within the franchise agreement or other related documents are void and unenforceable in Washington to the extent that they violate this statute.
For a prospective Apricot Lane franchisee in Washington, this information is crucial for understanding the limitations on non-competition agreements. Franchisees need to be aware that non-competes are only enforceable against employees earning above the threshold, which adjusts annually for inflation. This may influence hiring practices, compensation structures, and strategies for protecting the business's interests, such as trade secrets and customer relationships, through means other than non-compete agreements for lower-earning employees.