Does Washington State law supersede the Bang Cookies 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.
-
- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
-
- 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, specifically Chapter 49.62 RCW, may supersede the non-competition provisions outlined in the Bang Cookies Franchise Agreement. This means that certain aspects of the non-competition agreements within the franchise agreement may not be enforceable in Washington State if they conflict with state law. This is implemented via a specific Washington State Franchise Agreement Amendment.
Several specific conditions under Washington law could limit the enforceability of non-compete agreements. Firstly, if an employee's annual earnings do not exceed $100,000, the non-compete covenant is unenforceable. Secondly, there is a legal presumption that any non-compete agreement lasting longer than 18 months is unreasonable and unenforceable. Thirdly, Bang Cookies cannot restrict a franchisee from soliciting or hiring any employee of the franchisor or another franchisee within the Bang Cookies system. Finally, any contractual provision that mandates the adjudication of a non-competition covenant outside of Washington State is considered void and unenforceable.
For a prospective Bang Cookies franchisee in Washington, this amendment offers some protection against overly restrictive non-compete clauses. It ensures that the franchisee's rights under Washington law are upheld, particularly concerning the ability to hire employees and the duration and income thresholds for non-compete agreements. Franchisees should carefully review the franchise agreement and this amendment with legal counsel to fully understand their rights and obligations under both the agreement and Washington state law.