In Washington state, what is the minimum annualized earnings threshold for an employee of a Burger King franchisee above which a noncompetition covenant may be enforceable?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
As a result, any provisions contained in the Franchise Agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
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, in the state of Washington, a noncompetition covenant is only enforceable against an employee of a Burger King franchisee if the employee's annualized earnings exceed $100,000. This figure will be adjusted annually for inflation. This is based on Washington state law RCW 49.62.020.
This means that if a Burger King franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning above this threshold. If the employee's earnings are below this amount, the non-compete agreement is considered void and unenforceable under Washington law. This protects lower-earning employees from being restricted in their future employment opportunities.
This provision also clarifies that any conflicting terms within the Burger King franchise agreement itself are superseded by Washington state law. Therefore, even if the standard Burger King franchise agreement contains non-compete clauses that do not meet this earnings threshold, those clauses will not be enforceable in Washington. Franchisees in Washington need to be aware of this state-specific amendment to ensure compliance with local labor laws.