What does Washington law limit regarding non-competition agreements for a Bang Cookies franchise?
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's 2024 Franchise Disclosure Document, Washington state law, specifically Chapter 49.62 RCW, places several limitations on non-competition agreements. These limitations may supersede the non-competition provisions outlined in the Bang Cookies Franchise Agreement.
First, an employee non-compete covenant is unenforceable unless the employee's annual earnings exceed $100,000. Second, there is a legal presumption that any non-compete agreement lasting longer than 18 months is considered unreasonable and therefore unenforceable. Third, Bang Cookies, as a franchisor, is prohibited from restricting a franchisee from soliciting or hiring any employee of the franchisor or another franchisee within the Bang Cookies system.
Finally, any provision within a contract that mandates an employee to resolve a non-competition covenant outside of Washington State is considered void and unenforceable under Washington law. This amendment ensures that Washington-based Bang Cookies franchisees are protected by the state's specific regulations regarding non-competition agreements.