For C12 Group franchises in Washington, what is the annual earnings threshold for an employee of a franchisee for a noncompetition covenant to be enforceable?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent 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 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
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is void and unenforceable against an employee of a franchisee unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation.
This means that if a C12 Group franchisee in Washington wants to enforce a non-compete agreement against one of their employees, that employee must be earning more than $100,000 annually (adjusted for inflation). If the employee earns less than this amount, the non-compete agreement is not legally enforceable. This provision is based on RCW 49.62.020.
Additionally, the FDD states that any provisions in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington. This ensures that the state law takes precedence over any conflicting terms in the franchise agreement, protecting the rights of employees working for C12 Group franchisees in Washington.