In Washington state, what is the minimum annualized earnings threshold for a franchisee employee at Bambu 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 Washington state, a noncompetition covenant is void and unenforceable against an employee of a Bambu franchisee unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount will be adjusted annually 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 at least $100,000 annually. If the employee earns less than this amount, the non-compete agreement is not legally enforceable. This threshold is subject to annual adjustments for inflation, so the actual minimum earnings may change over time.
This provision protects lower-earning employees from being unduly restricted in their future employment opportunities. It also means that Bambu franchisees in Washington need to be aware of this earnings threshold when drafting and attempting to enforce non-competition agreements with their employees. Any provisions in the franchise agreement or other documents that conflict with these limitations are void and unenforceable in Washington.