How often is the earnings threshold for non-competition covenants adjusted for Boulder Designs franchisees 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.
-
- Transfer fees are collectable to the extent that they reflect Franchisor's reasonable estimated or actual costs in effecting a transfer.
-
- 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 the state of Washington, the earnings threshold for independent contractors of a franchisee, related to non-competition covenants, is adjusted annually for inflation. Specifically, a noncompetition covenant is void and unenforceable against an independent contractor if their annualized earnings from the party seeking enforcement do not exceed $250,000 per year. This amount is subject to annual adjustments based on inflation.
This means that if a Boulder Designs franchisee in Washington hires an independent contractor, any non-compete agreement they have is only enforceable if the contractor earns more than $250,000 annually, with that threshold increasing each year to account for inflation. This protects lower-earning independent contractors from being unduly restricted in their ability to work for others after their engagement with the franchisee ends.
For a prospective Boulder Designs franchisee in Washington, this has important implications for hiring and managing independent contractors. They need to be aware of the earnings threshold and how it changes each year to ensure that their non-compete agreements are enforceable. Failure to do so could result in the non-compete agreement being deemed void, allowing the independent contractor to work for competitors without legal repercussions. This provision aims to balance the franchisee's need to protect their business interests with the independent contractor's right to earn a living.