In Washington, what is the effect of provisions in the Augusta Lawn Care franchise agreement that conflict with limitations on non-competition covenants?
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.
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 unenf
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, Washington state law places specific limitations on non-competition covenants, particularly concerning employees and independent contractors. For an employee of an Augusta Lawn Care franchisee, a non-competition covenant is void and unenforceable if their annualized earnings from the franchisee do not exceed $100,000, a figure that is adjusted annually for inflation. Similarly, for an independent contractor of a franchisee, such a covenant is unenforceable if their annualized earnings are below $250,000, also subject to annual inflation adjustments.
This means that any part of the Augusta Lawn Care franchise agreement that contradicts these financial thresholds and limitations is legally void and unenforceable in Washington. This protects lower-earning employees and contractors from being unduly restricted by non-competition agreements.
Furthermore, the FDD states that Augusta Lawn Care is prohibited from restricting a franchisee from soliciting or hiring any employee of another Augusta Lawn Care franchisee or any employee of Augusta Lawn Care itself. Any provisions in the franchise agreement that attempt to impose such restrictions are also void and unenforceable in Washington. This provision promotes labor mobility within the Augusta Lawn Care franchise system and between franchisees and the franchisor in Washington.