Is the $100,000 earnings threshold for noncompetition covenants for Big Apple Bagels franchisee employees in Washington subject to change?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
-
- 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 ord
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the $100,000 earnings threshold for noncompetition covenants pertaining to franchisee employees in Washington is subject to change. Specifically, for an employee of a Big Apple Bagels franchisee, a noncompetition covenant is unenforceable if the employee's annualized earnings from the party seeking enforcement exceed $100,000 per year.
This threshold is not fixed; the FDD states that the $100,000 amount will be adjusted annually for inflation. This means that the actual earnings threshold above which a noncompetition covenant cannot be enforced may increase over time to reflect changes in the cost of living.
For a prospective Big Apple Bagels franchisee in Washington, this has significant implications. Franchisees need to be aware of the current earnings threshold when drafting or enforcing noncompetition agreements with their employees. They should also stay informed about annual adjustments to this threshold to ensure their agreements remain enforceable. Failing to do so could result in legal challenges and the inability to protect their business interests through noncompetition covenants for employees earning above the adjusted threshold.