What is the minimum annualized earnings threshold for a Beverly Anns Cookie employee for a noncompetition covenant to be enforceable in Washington?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
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that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.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, reimbu
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie FDD, a noncompetition covenant with an independent contractor in Washington State is only enforceable if the independent contractor's annualized earnings exceed $250,000. This amount is subject to annual adjustments for inflation. This stipulation is based on Washington state law (RCW 49.62.030).
This means that if a Beverly Anns Cookie franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, they must ensure that the contractor's earnings meet or exceed this threshold. If the earnings are below this level, the non-compete agreement is considered void and unenforceable under Washington law.
Beverly Anns Cookie franchisees should be aware of this requirement and consult with legal counsel to ensure their non-competition agreements comply with Washington state law. The FDD also states that any provision in the franchise agreement that conflicts with these limitations is void and unenforceable in Washington.