Is the $250,000 earnings threshold for non-competition covenants related to Buns On Fire independent contractors in Washington a fixed amount?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
enewal of your franchise.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
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- Transfer fees are collectable to the extent that they reflect the Franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Section 4.01 of the Franchisee Agreement shall be amended to add the following language:
- "In lieu of an impound of franchise fees, the Franchisor will not require or accept the payment of any initial franchise fees until the franchisee has (a) received all pre-opening and initial training obligations that it is entitled to under the franchise agreement or offering circular, and (b) is open for business."
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- Pursuant to RCW 49.62.020, a noncompetitio
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the $250,000 earnings threshold for non-competition covenants related to Buns On Fire independent contractors in Washington is not a fixed amount. The document states that pursuant to RCW 49.62.030, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year. This amount, however, will be adjusted annually for inflation.
This means that the actual earnings threshold above which a non-competition covenant can be enforced against an independent contractor may change each year based on inflation. Franchisees in Washington should be aware of this provision and consult the relevant statutes to determine the current applicable threshold.
Buns On Fire franchisees should consult with legal counsel to ensure their independent contractor agreements comply with current Washington state law regarding non-competition covenants. This is especially important because any provisions in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.