How are the earnings thresholds for non-competition covenants adjusted for Augusta Lawn Care franchisees in Washington?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
A release 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
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, non-competition covenants in Washington State are subject to specific earnings thresholds that are adjusted annually for inflation. For an employee of an Augusta Lawn Care franchisee, a non-competition covenant is void and unenforceable if the employee's annualized earnings from the franchisee do not exceed $100,000 per year. Similarly, for an independent contractor of an Augusta Lawn Care franchisee, such a covenant is unenforceable if their annualized earnings from the franchisee are less than $250,000 per year. These earnings thresholds are mandated by Washington State law (RCW 49.62.020 and RCW 49.62.030).
This means that Augusta Lawn Care franchisees in Washington cannot enforce non-compete agreements against employees or independent contractors who earn below these specified amounts. The annual adjustment for inflation ensures that these thresholds remain relevant over time, reflecting changes in the cost of living and wage levels. Any provisions within the franchise agreement that conflict with these state-mandated limitations are considered void and unenforceable in Washington.
For a prospective Augusta Lawn Care franchisee in Washington, this information is crucial for understanding the limitations on non-competition agreements. It ensures compliance with state law and affects the ability to restrict former employees or contractors from engaging in competitive activities if their earnings fall below the stated thresholds. Franchisees should consult with legal counsel to ensure their agreements align with these requirements and to understand the implications for their business operations and employee/contractor relations.