What specific law governs noncompetition covenants for Beverly Anns Cookie employees 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that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.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, 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 indemnified party's negligence, willful misconduct, strict liability, or fraud.
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- Attorneys' Fees. If the
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, for franchisees operating in Washington, noncompetition covenants for independent contractors are governed by RCW 49.62.030. This law states that a noncompetition covenant is void and unenforceable against an independent contractor if their annualized earnings from the party seeking enforcement do not exceed $250,000 per year. This amount will be adjusted annually for inflation.
This means that if a Beverly Anns Cookie franchisee in Washington hires an independent contractor, any non-compete agreement they sign is only enforceable if the contractor earns more than $250,000 annually from the franchise. If the contractor earns less than this threshold, the non-compete agreement is considered void and unenforceable under Washington law. This is a crucial point for franchisees to consider when hiring and contracting in Washington, as it directly impacts their ability to restrict an independent contractor's future employment or business activities.
Additionally, RCW 49.62.060 prohibits Beverly Anns Cookie from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. Any provisions in the franchise agreement that conflict with these limitations are void and unenforceable in Washington.