If a provision in the Canine Dimensions franchise agreement conflicts with Washington's noncompetition covenant laws, is it enforceable?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
re 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 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.
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, any provisions within the franchise agreement that conflict with Washington's noncompetition covenant laws are void and unenforceable in Washington state. Specifically, this relates to covenants impacting employees and independent contractors. For an employee of a Canine Dimensions franchisee, a noncompetition covenant is unenforceable if their annualized earnings from the franchisee are $100,000 or less. This earnings threshold is adjusted annually for inflation. For an independent contractor of a franchisee, the noncompetition covenant is unenforceable if their annualized earnings from the franchisee are $250,000 or less, also adjusted annually for inflation.
This means that Canine Dimensions franchisees in Washington cannot enforce non-compete agreements against lower-earning employees or independent contractors, even if the standard franchise agreement contains such provisions. This protection is enshrined in Washington state law (RCW 49.62.020 and RCW 49.62.030), which takes precedence over the franchise agreement in this specific instance.
Furthermore, Canine Dimensions is also prohibited from restricting a franchisee from soliciting or hiring any employee of another Canine Dimensions franchisee, or any employee of Canine Dimensions itself. Any clause attempting to impose such restrictions would also be unenforceable in Washington. This ensures franchisees have the freedom to hire qualified individuals without undue limitations imposed by the franchisor. This protection is outlined in RCW 49.62.060.
In essence, the Washington addendum to the Canine Dimensions franchise agreement ensures that Washington state law prevails in matters of non-competition and employee solicitation, providing additional protection to franchisees and their employees/contractors beyond the standard terms of the franchise agreement.