What happens to provisions in the Bw Premier Collection franchise agreement that conflict with Washington's non-competition covenant laws?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
xtent that they reflect the franchisor'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 Hotel Owner, 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 Hotel Owner 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 Distribution Agreement or
elsewhere that conflict with these limitations are void and unenforceable in Washington.
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a Hotel Owner from (i) soliciting or hiring any employee of a Hotel Owner of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such pr
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, any provisions within the franchise agreement that conflict with Washington's non-competition covenant laws are considered void and unenforceable in Washington state. This primarily concerns restrictions on employees and independent contractors.
Specifically, Washington law (RCW 49.62.020) states that non-competition covenants are unenforceable against an employee of a Bw Premier Collection Hotel Owner if the employee's annualized earnings are $100,000 or less. This threshold is subject to annual inflation adjustments. Similarly, RCW 49.62.030 makes non-competition covenants unenforceable against an independent contractor of a Hotel Owner if their annualized earnings are $250,000 or less, also adjusted for inflation annually.
Additionally, RCW 49.62.060 prohibits Bw Premier Collection from restricting a Hotel Owner from soliciting or hiring employees of other Hotel Owners within the Bw Premier Collection system, or from hiring employees of Bw Premier Collection itself. Any clauses in the franchise agreement that attempt to impose such restrictions are void and unenforceable in Washington. This ensures that Hotel Owners in Washington have the freedom to hire and solicit employees without undue restrictions from the franchise agreement, provided they comply with the earnings thresholds set by Washington law.