For a Bath Tune Up franchise in Washington, what law governs non-competition covenants for independent contractors of a franchisee?
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 the 2025 Bath Tune Up Franchise Disclosure Document, non-competition covenants for independent contractors of a franchisee in Washington are governed by RCW 49.62.030. This law states that a non-competition covenant is void and unenforceable against an independent contractor of a franchisee unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year. This amount will be adjusted annually for inflation.
This means that if a Bath Tune Up franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning more than $250,000 annually. If the contractor earns less than this threshold, the non-compete agreement is not enforceable. This provision aims to protect lower-earning independent contractors from being unduly restricted in their ability to work after leaving a particular engagement.
Bath Tune Up franchisees in Washington should be aware of this law when drafting or enforcing non-competition agreements with their independent contractors. Any provisions in the franchise agreement or other documents that conflict with these limitations are void and unenforceable in Washington. This ensures that the franchisee complies with Washington state law regarding non-competition covenants for independent contractors.