Does the Bang Cookies franchise agreement specify any exceptions to the non-competition agreement after the franchise relationship ends?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration or as determined by the arbitrator.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
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- A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act 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, rig
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to the 2024 Bang Cookies Franchise Disclosure Document, the standard franchise agreement includes post-termination non-competition obligations. However, the Washington State Franchise Agreement Amendment states that Chapter 49.62 RCW limits the use of non-competition agreements and may supersede the Franchise Agreement's non-competition provisions.
Specifically, Washington law stipulates that an employee non-compete covenant is unenforceable unless the employee's annual earnings exceed $100,000. Additionally, there is a presumption that any non-compete covenant lasting longer than 18 months is unreasonable and unenforceable. The law also prohibits a franchisor from restricting a franchisee from soliciting or hiring any employee of the franchisor or another franchisee of the same franchisor. Finally, any contractual provision requiring an employee to adjudicate a non-competition covenant outside of Washington State is void and unenforceable.
For a Bang Cookies franchisee in Washington, these stipulations provide some protection against overly broad or restrictive non-compete clauses. The franchisee should consult with legal counsel to fully understand their rights and obligations under Washington law, as it may impact the enforceability of the standard non-competition provisions in the Bang Cookies franchise agreement.