In Washington, what is the minimum annualized earnings threshold for a Brueggers Bagels franchisee employee 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 employee of a franchisee if the employee's annualized earnings from the party seeking enforcement do not exceed $100,000 per year. This amount will be adjusted annually for inflation. This protection is codified in RCW 49.62.020.
This means that if a Brueggers Bagels franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning more than $100,000 annually (adjusted for inflation). If the employee earns less than this amount, the non-compete agreement is void and unenforceable. This law aims to protect lower-earning employees from being unduly restricted in their future employment opportunities.
It is important to note that this threshold applies specifically to employees. The FDD also states that a different threshold of $250,000 per year (adjusted for inflation) applies to independent contractors of a franchisee in Washington. Franchisees should be aware of these stipulations and consult with legal counsel to ensure their non-competition agreements comply with Washington state law.