What is the minimum annualized earnings threshold for an employee of a Bojangles Developer in Washington, above which a noncompetition covenant may be enforceable?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
ing an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- A release or waiver of rights executed by a franchisee may 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, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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- Transfer fees are collectable to the extent that they reflec
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is void and unenforceable against an employee of a franchisee unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount is subject to annual adjustments for inflation. This protection extends to employees of franchisees, ensuring that non-compete agreements are only enforceable against those earning above this threshold.
This provision is based on RCW 49.62.020, a Washington state law, and any conflicting terms within the franchise agreement are void and unenforceable in Washington. This means that Bojangles cannot enforce a non-compete agreement against a franchisee's employee in Washington if that employee earns less than the specified annualized amount.
For a prospective Bojangles franchisee in Washington, this information is crucial for understanding the limitations on non-competition agreements with their employees. It ensures that franchisees are aware of the legal restrictions and cannot impose overly restrictive non-compete terms on lower-earning employees. Franchisees should consult with legal counsel to ensure their employment agreements comply with Washington law.