In Washington, what is the minimum annualized earnings threshold for an independent contractor 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, in the state of Washington, a noncompetition covenant is void and unenforceable against an independent contractor working for an Apricot Lane franchisee if the independent contractor's earnings from the party seeking enforcement, when annualized, do not exceed $250,000 per year. This amount will be adjusted annually for inflation. This is based on the Revised Code of Washington (RCW) 49.62.030.
This means that if an Apricot Lane franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning more than $250,000 annually. If the contractor earns less than this threshold, the non-compete agreement is not legally enforceable. This threshold is subject to annual adjustments for inflation, so the exact amount may change over time.
This provision protects lower-earning independent contractors from being unduly restricted by non-compete agreements. It ensures that non-compete agreements are only enforceable against those independent contractors who are highly compensated. Any conflicting provisions within the franchise agreement or other documents are void and unenforceable in Washington, providing clarity and legal protection for both the franchisee and their independent contractors.