What is the annual earnings threshold for a Canopy Lawn Care franchisee employee for a noncompetition covenant to be enforceable in Washington?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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 w
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–47)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is void and unenforceable against an employee of a Canopy Lawn Care franchisee unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation.
This means that if a Canopy Lawn Care franchisee in Washington wants to enforce a non-compete agreement against one of their employees, that employee must be earning more than $100,000 annually (adjusted for inflation). If the employee earns less than this amount, the non-compete agreement is not legally enforceable. This protects lower-earning employees from being unduly restricted in their future employment opportunities.
Additionally, the FDD states that a noncompetition covenant is void and unenforceable against an independent contractor of a Canopy Lawn Care franchisee 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). The franchise agreement states that any provisions conflicting with these limitations are void and unenforceable in Washington.