In Washington, what is the minimum annualized earnings threshold for a Bath Tune Up franchisee's employee for a noncompetition covenant to be enforceable?
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, a noncompetition covenant is void and unenforceable against an employee of a Bath Tune Up franchisee unless the employee's earnings, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation.
Similarly, a noncompetition covenant is unenforceable against an independent contractor of a Bath Tune Up franchisee if their annualized earnings are more than $250,000 per year, also adjusted annually for inflation. Any provisions in the franchise agreement that conflict with these limitations are void and unenforceable in Washington.
This means that Bath Tune Up franchisees in Washington cannot enforce non-compete agreements against employees earning less than $100,000 annually (adjusted for inflation) or against independent contractors earning less than $250,000 annually (adjusted for inflation). This is a significant legal restriction that franchisees must consider when hiring and contracting in Washington, as it limits their ability to prevent these workers from competing with the franchise after their employment or contract ends.