What is the minimum annualized earnings threshold for a non-competition covenant to be enforceable against an employee of a Camp Margaritaville franchisee in Washington?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
RESORTS, LLC STATE OF WASHINGTON**
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail.
RCW 19.100.180 may supersede the Franchise Agreement in your relationship with the franchisor, including the area of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the area 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
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Washington state law impacts the enforceability of non-competition covenants for employees of franchisees. Specifically, pursuant to RCW 49.62.020, a non-competition covenant is void and unenforceable against an employee of a Camp Margaritaville franchisee if the employee's annualized earnings from the franchisee do not exceed $100,000 per year. This threshold will be adjusted annually for inflation.
This means that Camp Margaritaville franchisees in Washington cannot enforce non-compete agreements against employees who earn less than the annually adjusted $100,000 threshold. This limitation is designed to protect lower-earning employees from being unduly restricted in their future employment opportunities. Any provisions in the franchise agreement or other documents that conflict with this earnings threshold are void and unenforceable in Washington.
For a prospective Camp Margaritaville franchisee in Washington, this information is crucial for understanding the limitations on enforcing non-competition agreements. Franchisees should be aware that they cannot prevent employees earning less than the specified amount from working for competitors after leaving their employment. Franchisees should consult with legal counsel to ensure their employment agreements comply with Washington law and to understand the implications of these restrictions on their business operations.