In Washington, what happens to provisions in the Card My Yard franchise agreement that conflict with the limitations on noncompetition covenants?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
se which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as the right to a jury trial may not be enforceable.
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- Transfer fees are collectable to the extent they reflect the franchisor's reasonable estimated or actual cost in effecting a transfer.
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- 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
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, any provisions within the franchise agreement that do not align with Washington state's limitations on noncompetition covenants are considered void and unenforceable in Washington.
Specifically, in Washington, a noncompetition covenant is unenforceable against an employee of a Card My Yard franchisee if the employee's annualized earnings from the franchisee are less than $100,000 per year. This amount is subject to annual adjustments for inflation. Similarly, a noncompetition covenant is unenforceable against an independent contractor of a Card My Yard franchisee if the independent contractor's earnings are less than $250,000 per year, also adjusted annually for inflation.
This means that Card My Yard franchisees in Washington cannot enforce non-compete agreements against employees or independent contractors who earn less than these specified amounts. Any attempt to enforce such a provision would be invalid under Washington law. This addendum ensures that the franchise agreement adheres to Washington state law, providing clarity and protection for both the franchisee and their workers.