In Washington, what is the minimum annualized earnings threshold for a Bath Tune Up franchisee's independent contractor 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 Bath Tune Up's 2025 Franchise Disclosure Document, Washington state law sets specific earnings thresholds for noncompetition covenants to be enforceable against an independent contractor of a franchisee.
Specifically, for a noncompetition covenant to be valid against an independent contractor working for a Bath Tune Up franchisee in Washington, the independent contractor's annualized earnings from the franchisee must exceed $250,000 per year. This amount is subject to annual adjustments for inflation, potentially changing the threshold over time.
This regulation means that Bath Tune Up franchisees in Washington cannot enforce non-compete agreements against their independent contractors unless those contractors meet this high earnings threshold. Any provisions in the franchise agreement or other documents that conflict with these limitations are considered void and unenforceable in Washington.
Prospective Bath Tune Up franchisees in Washington should be aware of this limitation, as it affects their ability to restrict the business activities of their independent contractors after their relationship ends. Franchisees should consult with legal counsel to ensure their agreements comply with Washington law.