In Washington, what is the minimum annualized earnings threshold for an employee of an Augusta Lawn Care franchisee for a noncompetition covenant to be enforceable?
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, in the state of Washington, a noncompetition covenant is unenforceable against an employee of an Augusta Lawn Care franchisee if the employee's annualized earnings from the franchisee are less than $100,000 per year. This amount will be adjusted annually for inflation. This is based on RCW 49.62.020.
This means that if an Augusta Lawn Care franchisee in Washington wants to enforce a non-compete agreement against a former employee, that employee must have been earning at least $100,000 annually. If the employee earned less than this threshold, the non-compete agreement is void and unenforceable. This protects lower-earning employees from being unduly restricted in their future employment opportunities.
Additionally, the FDD states that a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee if their earnings are less than $250,000 per year, based on RCW 49.62.030. The franchise agreement cannot override these limitations, and any conflicting provisions are void in Washington. This ensures that both employees and independent contractors are protected from overly restrictive non-compete agreements unless they meet the specified earnings thresholds.