In Washington, what is the minimum annualized earnings threshold for a Bonchon franchisee's employee for a noncompetition covenant to be enforceable?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
r into two consecutive Successor Franchise Agreements and the conditions the Franchisee must satisfy in order to have the right to enter into a Successor Franchise Agreement, respectively. The Franchisor will have no obligation upon the termination of the second Successor Franchise Agreement to offer the Franchisee a continued right to operate its Bonchon Business, and the Franchisee may be required at that time to stop operating its restaurant as a Bonchon Restaurant and to comply with all post-termination obligations.
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annual
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is void and unenforceable against an employee of a Bonchon franchisee unless the employee's earnings, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation.
This means that if a Bonchon franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning more than $100,000 annually (adjusted for inflation). If the employee earns less than this amount, the non-compete agreement is not legally enforceable. This protection extends to employees of the franchisee, not just direct employees of Bonchon itself.
Additionally, the FDD states that any provisions within the franchise agreement or other related documents that conflict with these limitations are void and unenforceable in Washington. This ensures that the state law takes precedence over any conflicting terms in the franchise agreement, protecting the rights of employees working for Bonchon franchisees in Washington. Franchisees need to be aware of this threshold when drafting employment agreements to ensure compliance with Washington state law.