In Washington, what is the minimum annualized earnings threshold for an independent contractor of a Brueggers Bagels franchisee 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 working for a Brueggers Bagels franchisee if the contractor's annualized earnings from the franchisee are below $250,000. This threshold is subject to annual adjustments for inflation. This stipulation is based on RCW 49.62.030. Any conflicting provisions within the franchise agreement or other documents are considered void and unenforceable in Washington.
This means that if a Brueggers Bagels franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, they must ensure that the contractor's earnings exceed the specified amount. If the earnings are below this threshold, the non-compete agreement is not legally binding. This protects independent contractors from being unduly restricted in their ability to work for other businesses if their earnings from the Brueggers Bagels franchise are not substantial.
Prospective Brueggers Bagels franchisees in Washington should be aware of this limitation when drafting agreements with independent contractors. They should also stay informed about any annual adjustments to the earnings threshold due to inflation to ensure their non-compete agreements are enforceable. This information is crucial for managing legal compliance and protecting the franchisee's business interests within the boundaries of Washington state law.