What is the minimum annualized earnings threshold for a noncompetition covenant to be enforceable against an employee of a Brueggers Bagels franchisee in Washington?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
tment Protection Act, Chapter 19.100 RCW will prevail.
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- 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.
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- 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.
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- A release or waive
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 only enforceable against an employee of a Brueggers Bagels franchisee if the employee's annualized earnings exceed $100,000. This figure will be adjusted annually for inflation. This is based on Washington state law RCW 49.62.020. Any conflicting provisions in the franchise agreement are void and unenforceable in Washington.
This means that if a Brueggers Bagels franchisee in Washington wants to enforce a non-compete agreement against an employee, they can only do so if that employee earns more than $100,000 per year (adjusted for inflation). This law protects lower-earning employees from being restricted in their future employment opportunities.
For a prospective Brueggers Bagels franchisee in Washington, this is an important consideration when hiring employees and drafting employment agreements. They need to be aware of this earnings threshold and ensure that any non-compete agreements comply with Washington law. It also prevents the franchisor from restricting a franchisee from hiring or soliciting employees of another franchisee or the franchisor.