What happens to a contractual provision that requires an employee to adjudicate a non-competition covenant outside of Washington State for a Bang Cookies franchise?
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 Bang Cookies's 2024 Franchise Disclosure Document, specifically the Washington State Franchise Agreement Amendment, any contractual provision that mandates an employee to resolve a non-competition agreement outside of Washington State is considered void and unenforceable. This amendment is in place to align with the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, and Chapter 49.62 RCW, which limits the use of non-competition agreements.
For a prospective Bang Cookies franchisee in Washington, this means that they cannot be forced to adjudicate employee non-compete disputes in another state. This protects the employee's rights and ensures that any legal proceedings related to non-competition agreements occur within the jurisdiction of Washington State. This provision is designed to protect employees working for Bang Cookies franchisees in Washington State.
This amendment reflects Washington's specific laws regarding non-competition agreements, which also include stipulations such as the unenforceability of employee non-competes unless the employee's annual earnings exceed $100,000 and a presumption that non-compete covenants longer than 18 months are unreasonable. Furthermore, Bang Cookies cannot restrict a franchisee from hiring any employee of the franchisor or another franchisee of the same franchisor.