What is the relevant RCW section that addresses noncompetition covenants for employees of 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 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, RCW 49.62.020 addresses noncompetition covenants for employees of franchisees in Washington. This statute states that 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. This amount is subject to annual adjustments for inflation. Therefore, any conflicting provisions in the franchise agreement or elsewhere are void and unenforceable in Washington.
Additionally, RCW 49.62.030 addresses noncompetition covenants for independent contractors of franchisees in Washington. This statute states that a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year. This amount is also subject to annual adjustments for inflation. As a result, any provisions conflicting with these limitations are void and unenforceable in Washington.
Furthermore, RCW 49.62.060 prohibits Canine Dimensions 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. Any such provisions in the franchise agreement or elsewhere are void and unenforceable in Washington.