Under what circumstances does the Washington addendum to the Bumper Man franchise agreement apply?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
pt when executed pursuant to a negotiated settlement after the Franchise Agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act or rights or remedies under the Washington Franchise Investment Protection Act such as a right to trial by jury may not be enforceable.
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- Transfer Fees. Transfer fees are collectable to the extent that they reflect the Franchisee's reasonable estimated or actual costs in effecting a transfer.
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- Indemnification. The last two sentences of Section 13(c) of the Franchise Agreement are hereby deleted.
Section 20 of the Franchise Agreement will be supplemented by the addition of the following sentence at the end of the first paragraph: "Franchisee has no obligation to indemnify or hold harmless an indemnified party for losses to the extent that they are determined to have been caused
solely and directly by the indemnified party's negligence, willful misconduct, strict liability, or fraud."
- Noncompetition Covenants. 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 provisio
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the Washington addendum modifies the franchise agreement to address specific legal considerations within the state of Washington.
Specifically, the addendum addresses noncompetition covenants, stating that any provisions conflicting with the limitations set forth in Washington state law (RCW 49.62.020 and RCW 49.62.030) are void and unenforceable. These laws stipulate that noncompetition covenants are void against employees whose annualized earnings are below $100,000 and against independent contractors whose annualized earnings are below $250,000. These amounts are subject to annual inflation adjustments. The addendum also states that any provisions restricting a franchisee from soliciting or hiring employees of other Bumper Man franchisees or the franchisor are void and unenforceable in Washington, referencing RCW 49.62.060.
Additionally, the addendum clarifies that Section 26(d) of the franchise agreement, which likely pertains to questionnaires and acknowledgments, does not apply to residents of Washington. The addendum emphasizes that, unless specifically amended by the addendum itself, the original terms of the Bumper Man franchise agreement remain in effect and will be construed and enforced accordingly.
In practical terms, this means that if a Bumper Man franchisee is operating in Washington, the non-compete agreements they can enforce on their employees or contractors are limited by state law based on income thresholds. Also, Bumper Man franchisees in Washington are not restricted from hiring or soliciting employees from other Bumper Man franchisees or from Bumper Man itself. Franchisees should carefully review the addendum to understand their rights and obligations under Washington law.