For Burger King franchises in Washington state, what is the minimum annualized earnings an employee must have before a noncompetition covenant can be enforced against them?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your franchise.
-
- 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 the Franchise Agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
-
- A release or waiver of rights exe
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, Washington state law impacts the enforceability of noncompetition covenants for Burger King employees. Specifically, for Burger King franchises in Washington, a noncompetition covenant is only enforceable against an employee if their annualized earnings exceed $100,000 per year. This figure will be adjusted annually for inflation. This protection extends to employees of Burger King franchisees as well.
This means that if a Burger King franchisee in Washington attempts to enforce a non-compete agreement against an employee earning less than the specified amount, the agreement is considered void and unenforceable under Washington law. This limitation is based on RCW 49.62.020.
Furthermore, the FDD states that any provisions within the Franchise Agreement that conflict with these limitations are also void and unenforceable in Washington. This ensures that the state law takes precedence over any conflicting terms in the franchise agreement, providing additional protection for Burger King employees in Washington. Independent contractors have a different threshold of $250,000 per year before a noncompetition covenant can be enforced.