In Washington, what is the minimum annualized earnings threshold for a Camp Margaritaville franchisee independent contractor for a noncompetition covenant to be enforceable?
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. Specifically, for an independent contractor working for a Camp Margaritaville franchisee, a non-competition covenant is only enforceable if the independent contractor's annualized earnings from the party seeking enforcement exceed $250,000 per year. This amount will be adjusted annually for inflation. This threshold is established under RCW 49.62.030. Any provisions within the franchise agreement that conflict with this earnings threshold are considered void and unenforceable in Washington.
This means that if a Camp Margaritaville franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, they can only do so if that contractor earns more than $250,000 annually (adjusted for inflation). If the contractor earns less than this amount, the non-compete agreement is not legally enforceable. This protects lower-earning independent contractors from being unduly restricted in their ability to work for others after their engagement with the Camp Margaritaville franchise ends.
Prospective Camp Margaritaville franchisees in Washington should be aware of this legal limitation when drafting agreements with independent contractors. They should also stay informed about annual inflation adjustments to the $250,000 threshold to ensure their non-competition agreements are enforceable. This Washington state law provides significant protection to independent contractors and impacts how Camp Margaritaville franchisees can protect their business interests through non-compete agreements.