Is the $100,000 earnings threshold for noncompetition covenants related to Big Apple Bagels franchises 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 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 related to noncompetition covenants for employees of a Big Apple Bagels franchisee in Washington is adjusted annually for inflation. Specifically, a noncompetition covenant is unenforceable against an employee if their annualized earnings from the party seeking enforcement exceed $100,000 per year, with this amount being adjusted for inflation each year. This is pursuant to RCW 49.62.020.
This means that the actual earnings threshold above which a noncompetition agreement can be enforced will increase over time to account for inflation. This adjustment protects employees of Big Apple Bagels franchisees by ensuring that the earnings threshold keeps pace with the rising cost of living.
For a prospective Big Apple Bagels franchisee in Washington, this information is relevant when considering employment contracts and noncompetition agreements with their employees. The franchisee needs to be aware of the current adjusted earnings threshold to ensure that any noncompetition agreements they attempt to enforce are legally valid under Washington law. They should consult with legal counsel to stay informed about the updated threshold each year.