How are the earnings thresholds for noncompetition covenants adjusted annually for Bumble Roofing franchisees in Washington?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
chisor's reasonable estimated or actual costs in effecting a transfer.
Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the franchise agreement or elsewhere that co
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, noncompetition covenants in Washington State are subject to specific earnings thresholds that are adjusted annually for inflation. For an employee of a Bumble Roofing franchisee, a noncompetition covenant is void and unenforceable if their annualized earnings from the franchisee do not exceed $100,000 per year. For an independent contractor of a Bumble Roofing franchisee, the threshold is higher; a noncompetition covenant is unenforceable if their annualized earnings from the franchisee are less than $250,000 per year.
These earnings thresholds are important for prospective Bumble Roofing franchisees in Washington because they dictate the circumstances under which noncompetition agreements can be enforced. If a franchisee attempts to enforce a noncompete against an employee or contractor who earns less than the specified amounts, the agreement will be deemed void. This provides a level of protection for workers and contractors, ensuring they are not unduly restricted in their ability to seek other employment or contract opportunities.
The annual adjustment for inflation means that these income thresholds will likely increase over time, reflecting changes in the cost of living. This ensures that the noncompetition restrictions remain relevant and fair, preventing them from applying to lower-earning individuals due to inflationary pressures. Franchisees need to stay informed about these annual adjustments to ensure their noncompetition agreements comply with Washington law.
This type of state-specific regulation is not uncommon in franchising, as states often have their own laws governing the enforceability of noncompetition agreements. Prospective Bumble Roofing franchisees should consult with legal counsel to fully understand the implications of these regulations and how they affect their ability to protect their business interests while remaining compliant with Washington law.