What is the minimum annualized earnings threshold for an independent contractor of a Brueggers Bagels franchisee 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 against an independent contractor of a franchisee is only enforceable if the independent contractor's annualized earnings exceed $250,000. This threshold is subject to annual adjustments for inflation. This stipulation is based on RCW 49.62.030.
This means that if a Brueggers Bagels franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, they can only do so if that contractor earns more than $250,000 annually (adjusted for inflation). If the contractor's earnings are below this threshold, the non-compete agreement is considered void and unenforceable under Washington law.
This provision protects independent contractors from being unduly restricted in their ability to work for others if their earnings are below a certain level. Brueggers Bagels franchisees in Washington need to be aware of this law when drafting or enforcing non-competition agreements with independent contractors to ensure compliance.