For a Bath Tune Up franchise in Washington, how are the earnings thresholds for non-competition covenants adjusted annually?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Protection Act or any rule or order thereunder 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, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable
estimated or actual costs in effecting a transfer.
Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, in Washington, non-competition covenants are subject to specific earnings thresholds that are adjusted annually for inflation. For an employee of a Bath Tune Up franchisee, a noncompetition covenant is void and unenforceable if the employee's annualized earnings from the party seeking enforcement do not exceed $100,000 per year. For an independent contractor of a Bath Tune Up franchisee, the noncompetition covenant is void and unenforceable if their annualized earnings from the enforcing party do not exceed $250,000 per year.
These earnings thresholds are adjusted annually for inflation, meaning the specific dollar amounts will change each year based on inflation rates. This adjustment ensures that the enforceability of non-competition agreements remains relevant to the current economic conditions and wage levels. Any provisions within the Bath Tune Up franchise agreement or related documents that conflict with these limitations are considered void and unenforceable in Washington.
For a prospective Bath Tune Up franchisee in Washington, this means that non-competition agreements with employees or independent contractors are only enforceable if those individuals meet the specified earnings thresholds, as adjusted annually for inflation. This provides a level of protection for workers and contractors, ensuring they are not unduly restricted from seeking other opportunities unless their earnings are relatively high. Franchisees should be aware of these regulations and ensure their agreements comply with Washington law to avoid potential legal issues.