How often is the earnings threshold adjusted for inflation regarding non-competition covenants for Canine Dimensions franchisees in Washington?
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 co
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the earnings threshold related to non-competition covenants in Washington State is adjusted annually for inflation. Specifically, for an employee of a Canine Dimensions franchisee, a noncompetition covenant is void and unenforceable if the employee's annualized earnings from the franchisee do not exceed $100,000 per year, which is adjusted annually for inflation. Similarly, for an independent contractor of a franchisee, the noncompetition covenant is void and unenforceable if their annualized earnings from the franchisee do not exceed $250,000 per year, also adjusted annually for inflation.
This means that the minimum income an employee or independent contractor must earn to be subject to a non-compete agreement will increase each year to account for inflation. This adjustment protects lower-earning workers, ensuring they are not unduly restricted by non-competition agreements. For Canine Dimensions franchisees in Washington, this implies that they need to be aware of the updated income thresholds each year to ensure their non-competition agreements are enforceable.
It is important for prospective Canine Dimensions franchisees to understand these regulations, as any conflicting provisions in the franchise agreement or other documents are void and unenforceable in Washington. This ensures compliance with Washington state law and protects both the franchisee and their employees or independent contractors from unlawful non-competition restrictions.