What is the minimum annualized earnings threshold for a Brueggers Bagels franchisee employee in Washington for a noncompetition covenant to be enforceable?
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
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a noncompetition covenant in Washington State is only enforceable against an employee of a Brueggers Bagels franchisee if the employee's annualized earnings exceed a certain threshold.
Specifically, the minimum earnings threshold is $100,000 per year. This figure is subject to annual adjustments for inflation, meaning the actual threshold may increase over time. This provision is based on Washington state law (RCW 49.62.020), which aims to protect employees from overly restrictive non-compete agreements unless they are highly compensated.
For a Brueggers Bagels franchisee in Washington, this means that any noncompetition agreements with employees earning less than the adjusted $100,000 threshold are void and unenforceable. The franchisee must ensure their employment agreements comply with this requirement. Similarly, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation).