How are non-competition covenant earnings thresholds 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, in Washington, non-competition covenants have specific earnings thresholds that are adjusted annually for inflation. For an employee of a Bumble Roofing franchisee, the non-competition covenant is void and unenforceable if their annualized earnings are $100,000 or less. For an independent contractor of a Bumble Roofing franchisee, the non-competition covenant is void and unenforceable if their annualized earnings are $250,000 or less. These earnings thresholds are subject to annual adjustments for inflation under Washington law.
This means that Bumble Roofing franchisees in Washington need to be aware of these earnings thresholds when implementing non-competition agreements with their employees and independent contractors. If an employee or independent contractor earns less than the specified amounts (as adjusted for inflation each year), the non-competition covenant will not be legally enforceable. This is a significant consideration for managing personnel and protecting the Bumble Roofing business's interests in the state of Washington.
The specific mechanism or index used to calculate the annual inflation adjustments is not detailed in this section of the FDD. A prospective Bumble Roofing franchisee should seek clarification from the franchisor regarding the exact method used to determine the adjusted earnings thresholds each year. Understanding this will help ensure compliance with Washington state law and avoid potential legal issues related to non-competition agreements.