In Washington, what happens to 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
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, any provisions within the franchise agreement that conflict with Washington state's limitations on non-competition covenants are considered void and unenforceable. This protection extends to both employees and independent contractors of an Augusta Lawn Care franchisee.
For an employee of an Augusta Lawn Care franchisee, a non-competition covenant is unenforceable if their annualized earnings from the franchisee do not exceed $100,000 per year. This amount is subject to annual adjustments for inflation. Similarly, for an independent contractor of an Augusta Lawn Care franchisee, a non-competition covenant is unenforceable if their annualized earnings from the franchisee do not exceed $250,000 per year, also adjusted annually for inflation.
This means that Augusta Lawn Care franchisees in Washington cannot enforce non-compete agreements against lower-earning workers. This is a significant protection for workers, as it prevents them from being restricted from seeking other employment or contracting opportunities if their income falls below these thresholds. Augusta Lawn Care franchisees need to be aware of these limitations when drafting and enforcing non-competition agreements in Washington.