What is the effect of RCW 49.62.030 on Best Brains' noncompetition covenants with independent contractors?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
parties to deal with each other in good faith.
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- Indemnification. Any provision in the franchise agreement or related agreements requiring the franchisee to indemnify, reimburse, defend, or hold harmless the franchisor or other parties is hereby modified such that the franchisee has no obligation to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities to the extent that they are caused by the in
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, RCW 49.62.030 directly impacts the enforceability of noncompetition covenants against independent contractors working for a Best Brains franchisee in Washington state. Specifically, a noncompetition covenant is considered void and unenforceable if the independent contractor's annualized earnings from the party seeking enforcement do not exceed $250,000 per year. This threshold will be adjusted annually for inflation.
For a prospective Best Brains franchisee in Washington, this means that any non-compete agreements they attempt to enforce against independent contractors are only valid if the contractor earns above the specified annual amount. If an independent contractor earns less than $250,000 (adjusted for inflation), the non-compete agreement is unenforceable. This limitation is crucial for franchisees to understand when hiring and contracting with individuals, as it affects their ability to restrict those individuals from competing with the Best Brains business after their engagement ends.
Best Brains franchisees should ensure that their agreements comply with these legal requirements. Any provision within the franchise agreement or other related documents that contradicts these limitations set by Washington law is considered void and unenforceable. This ensures that the rights of independent contractors are protected under state law, and it places a clear earnings threshold on the enforceability of non-compete clauses.