What is the minimum annualized earnings threshold for a noncompetition covenant to be enforceable against a Best Brains franchisee's employee in Washington?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
rdance with RCW 19.100.220(2).
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- Franchisor's Business Judgement. Provisions in the franchise agreement or related agreements stating that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, a noncompetition covenant is only enforceable against an employee of a Best Brains franchisee in Washington if the employee's annualized earnings exceed $100,000. This threshold is subject to annual adjustments for inflation.
This means that if a Best Brains franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning at least $100,000 per year (adjusted for inflation). If the employee earns less than this amount, the non-compete agreement is considered void and unenforceable under Washington state law. This protects lower-earning employees from being unduly restricted in their future employment opportunities.
This provision also extends to independent contractors, setting a higher earnings threshold of $250,000 per year for non-competition covenants to be enforceable. Any clauses within the Best Brains franchise agreement that contradict these limitations are unenforceable in Washington. Therefore, franchisees in Washington should be aware of these specific state law requirements regarding noncompetition agreements to ensure compliance.