In Washington, what is the minimum annualized earnings threshold for an employee of a Bambu franchisee for a noncompetition covenant to be enforceable?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a res
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is void and unenforceable against an employee of a Bambu franchisee if the employee's annualized earnings from the franchisee do not exceed $100,000 per year. This amount is subject to annual adjustments for inflation. This stipulation is pursuant to RCW 49.62.020.
This means that if a Bambu franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning more than $100,000 annually (adjusted for inflation). If the employee earns less than this threshold, the non-compete agreement is not legally enforceable. This protects lower-earning employees from being restricted in their future employment opportunities.
It is important to note that this earnings threshold applies specifically to employees. The FDD also mentions a separate threshold for independent contractors of a Bambu franchisee in Washington, which is $250,000 per year (adjusted for inflation). Additionally, the FDD states that any provisions in the franchise agreement that conflict with these limitations are void and unenforceable in Washington.