Is the $100,000 earnings threshold for non-competition covenants for Big Apple Bagels employees in Washington adjusted annually for inflation?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
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- A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, in the state of Washington, non-competition covenants for employees of a Big Apple Bagels franchisee are subject to specific earnings thresholds. If a Big Apple Bagels franchisee seeks to enforce a non-competition covenant against an employee, that employee's annualized earnings must exceed $100,000. This threshold is mandated by Washington state law (RCW 49.62.020).
Furthermore, the FDD explicitly states that this $100,000 threshold will be adjusted annually for inflation. This adjustment ensures that the earnings threshold remains relevant over time, reflecting changes in the cost of living and wage levels. The adjustment protects employees from non-competition agreements unless their earnings are relatively high.
For independent contractors of a Big Apple Bagels franchisee in Washington, a separate earnings threshold applies. A noncompetition covenant is unenforceable against an independent contractor unless their annualized earnings exceed $250,000, and this amount is also adjusted annually for inflation. These regulations impact the ability of Big Apple Bagels franchisees to restrict the future employment or business activities of their employees and contractors in Washington.