In Washington, what is the minimum annualized earnings threshold for a Bonchon franchisee's independent contractor 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 Washington, a noncompetition covenant is void and unenforceable against an independent contractor of a Bonchon franchisee unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year. This amount will be adjusted annually for inflation. This stipulation is based on RCW 49.62.030.
This means that if a Bonchon franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, they must ensure that the contractor's annualized earnings are above this threshold. If the earnings are below $250,000 (adjusted for inflation), the non-compete agreement is not legally enforceable. This protects independent contractors from being unduly restricted in their ability to work for other businesses if their earnings are not sufficiently high.
This provision is important for prospective Bonchon franchisees in Washington to understand, as it affects their ability to protect their business interests through non-compete agreements with independent contractors. Franchisees need to be aware of the earnings threshold and ensure that their agreements comply with Washington law to be enforceable. Any conflicting provisions in the franchise agreement or other documents are void and unenforceable in Washington.