How often is the earnings amount adjusted for inflation regarding noncompetition covenants for Best Brains employees and independent contractors?
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that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.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 indemni
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the earnings thresholds related to noncompetition covenants for both employees and independent contractors are adjusted annually for inflation. Specifically, for an employee of a Best Brains franchisee, a noncompetition covenant is unenforceable if their annualized earnings do not exceed $100,000 per year. For an independent contractor of a Best Brains franchisee, the noncompetition covenant is unenforceable if their annualized earnings do not exceed $250,000 per year. These amounts are subject to annual adjustments based on inflation.
This annual adjustment for inflation is significant because it ensures that the earnings thresholds for noncompetition agreements remain relevant over time. Without such adjustments, the real value of these earnings thresholds would erode due to inflation, potentially impacting a larger number of employees and independent contractors. By adjusting these figures annually, Best Brains aims to maintain a fair and consistent standard for enforcing noncompetition covenants.
For a prospective Best Brains franchisee, this means that the enforceability of noncompetition agreements with their employees and independent contractors will depend on these annually adjusted earnings thresholds. Franchisees need to stay informed about the updated earnings amounts each year to ensure compliance with these regulations. This also highlights the importance of understanding and adhering to state-specific laws, as these noncompetition covenants are governed by Washington state law (RCW 49.62.020 and RCW 49.62.030).