What is the earnings threshold for a Boulder Designs franchisee's independent contractor 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, a noncompetition covenant is void and unenforceable against an independent contractor in Washington state unless the independent contractor's earnings from the Boulder Designs franchisee, 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 Boulder Designs franchisee in Washington hires an independent contractor, a non-compete agreement is only enforceable if that contractor earns more than $250,000 annually (adjusted for inflation). If the contractor earns less than this amount, the non-compete agreement is void.
This provision protects lower-earning independent contractors from being restricted by non-compete agreements, allowing them to seek other opportunities without legal repercussions. For a Boulder Designs franchisee, it's crucial to understand this threshold when drafting agreements with independent contractors in Washington to ensure compliance with state law. Any conflicting provisions in the Franchise Agreement are void and unenforceable in Washington.