What is the minimum annualized earnings threshold for a Brueggers Bagels franchisee independent contractor 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, in the state of Washington, a noncompetition covenant is unenforceable against an independent contractor of a franchisee if their annualized earnings from the party seeking enforcement do not exceed $250,000 per year. This amount will be adjusted annually for inflation. This stipulation is pursuant to RCW 49.62.030.
This means that if a Brueggers Bagels franchisee in Washington hires an independent contractor, any agreement preventing that contractor from working for a competitor is void unless the contractor earns more than $250,000 annually. This protects independent contractors from overly restrictive non-compete agreements when their income is below this threshold.
Brueggers Bagels franchisees in Washington should be aware of this law and ensure that their agreements with independent contractors comply with these requirements. Any conflicting provisions in the franchise agreement or other documents are void and unenforceable in Washington.