In Washington, what is the effect of a conflict between the franchise agreement and the limitations on non-competition covenants for a Bath Tune Up franchise?
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 FDD, in Washington, non-competition covenants have specific limitations based on earnings. For an employee of a Bath Tune Up franchisee, a non-competition covenant is void and unenforceable if their annualized earnings from the party seeking enforcement do not exceed $100,000, an amount that will be adjusted annually for inflation. Similarly, for an independent contractor of a franchisee, such a covenant is unenforceable if their annualized earnings from the enforcing party do not exceed $250,000, also adjusted annually for inflation.
This means that Bath Tune Up franchisees in Washington cannot enforce non-compete agreements against their employees or independent contractors if those individuals earn less than the specified amounts. This limitation is put in place to protect lower-earning workers from being unduly restricted in their ability to find other work.
Therefore, any provisions within the Bath Tune Up franchise agreement or any other related documents that conflict with these earnings-based limitations on non-competition covenants are considered void and unenforceable in the state of Washington. This ensures that the state's labor laws take precedence over any conflicting terms in the franchise agreement, providing protection to employees and independent contractors working for Bath Tune Up franchisees.