What happens to provisions in the Brueggers Bagels franchise agreement that conflict with Washington's noncompetition covenant laws?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ent Protection Act, Chapter 19.100 RCW will prevail.
- b. RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
- c. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
- d. A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rul
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, any provisions within the franchise agreement that conflict with Washington's noncompetition covenant laws are considered void and unenforceable in Washington state. This protection extends to both employees and independent contractors of a Brueggers Bagels franchisee.
Specifically, the FDD states that a noncompetition covenant is unenforceable against an employee if their annualized earnings from the party seeking enforcement do not exceed $100,000 per year, a figure that will be adjusted annually for inflation. For independent contractors, a noncompetition covenant is unenforceable if their annualized earnings from the enforcing party do not exceed $250,000 per year, also subject to annual inflation adjustments.
Furthermore, Brueggers Bagels is prohibited from restricting a franchisee from soliciting or hiring employees of another franchisee within the Brueggers Bagels system, or from soliciting or hiring any employee of the franchisor itself. Any provisions in the franchise agreement that attempt to impose such restrictions are void and unenforceable in Washington.