What is the earnings threshold for a Boulder Designs franchisee's employee above which a noncompetition covenant may be enforceable in Washington?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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 reflect Franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Pursuant to RW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of Franchise
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, in Washington state, a noncompetition covenant is void and unenforceable against an independent contractor of a Boulder Designs 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 means that if a Boulder Designs franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning more than $250,000 annually (adjusted for inflation). If the contractor earns less than this amount, the non-compete agreement is not enforceable. This provision is specific to Washington state and is governed by RCW 49.62.030.
This information is crucial for prospective Boulder Designs franchisees in Washington as it outlines the limitations on non-competition agreements with independent contractors. Franchisees need to be aware of this threshold when drafting and enforcing such agreements to ensure compliance with Washington state law. Any provisions in the Franchise Agreement that conflict with these limitations are void and unenforceable in Washington.