What is the presumption regarding the duration of non-compete covenants under Washington law for Bang Cookies franchises?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
her 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, Washington State law impacts the enforcement of non-compete agreements within the franchise agreement. Specifically, Washington law creates a presumption that any non-compete covenant lasting longer than 18 months is considered unreasonable and therefore unenforceable. This presumption is a key consideration for Bang Cookies franchisees in Washington.
This means that if the Bang Cookies franchise agreement includes a non-compete clause extending beyond 18 months, a Washington court would likely view it as presumptively invalid. Bang Cookies would need to provide strong justification to overcome this presumption, which could be difficult. This limitation is designed to protect individuals' ability to work and compete in the marketplace.
Furthermore, the Washington FDD Amendment states that a franchisor cannot restrict, restrain, or prohibit a franchisee from soliciting or hiring any employee of the franchisor or another franchisee of the same franchisor. This provision gives additional protection to franchisees and their ability to hire qualified staff, regardless of their previous affiliations within the Bang Cookies system. Any contractual provision requiring an employee to adjudicate a non-competition covenant outside of Washington State is void and unenforceable.
Prospective Bang Cookies franchisees in Washington should carefully review the franchise agreement's non-compete provisions in light of these state law limitations. They should also consult with an attorney to fully understand their rights and obligations under Washington law.