For a Bang Cookies franchise in Washington, what is the effect of Chapter 49.62 RCW on the franchise agreement's non-competition provisions?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
e 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 Bang Cookies' 2024 Franchise Disclosure Document, Chapter 49.62 RCW in Washington State places limitations on the use of non-competition agreements, which may override the non-competition provisions outlined in the Bang Cookies Franchise Agreement.
Specifically, Washington law stipulates that an employee non-compete covenant is unenforceable if the employee's annual earnings do not exceed $100,000. Additionally, there is a legal presumption that any non-compete covenant lasting longer than 18 months is considered unreasonable and unenforceable. Furthermore, Bang Cookies, as a franchisor, is prohibited from restricting, restraining, or preventing a franchisee from soliciting or hiring any employee of the franchisor or another franchisee within the same Bang Cookies system. Finally, any contractual provision that mandates an employee to resolve a non-competition covenant outside of Washington State is void and unenforceable.
For a prospective Bang Cookies franchisee in Washington, this means that the standard non-competition clauses in the franchise agreement may be superseded by these state laws. Franchisees should be aware of these limitations, especially concerning the hiring of employees and the duration and enforceability of non-compete agreements. It is advisable to consult with legal counsel to fully understand the implications of Chapter 49.62 RCW on their specific franchise agreement and business operations in Washington.