Is the $250,000 earnings threshold for noncompetition covenants for Big Apple Bagels franchisee independent contractors in Washington subject to change?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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' 2025 Franchise Disclosure Document, the $250,000 earnings threshold for noncompetition covenants pertaining to independent contractors of a franchisee in Washington is subject to change. Specifically, 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.
This threshold is governed by Washington state law (RCW 49.62.030), and the FDD explicitly states that this amount will be adjusted annually for inflation. This means that the actual earnings threshold required to enforce a noncompetition covenant against an independent contractor of a Big Apple Bagels franchisee may increase over time due to inflationary adjustments.
For a prospective Big Apple Bagels franchisee in Washington, this has significant implications. The franchisee needs to be aware that the enforceability of noncompetition agreements with their independent contractors is not fixed. They should regularly check the updated threshold to ensure their agreements remain valid. Failure to do so could result in the noncompetition covenant being deemed void and unenforceable, potentially allowing contractors to work for competitors despite the agreement. This adjustment helps protect the rights of independent contractors, ensuring that non-compete agreements are only enforceable against those with substantial earnings.