What is the minimum annualized earnings threshold for a noncompetition covenant to be enforceable against an employee of a Casiola franchisee in Washington?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ation of the Washington Franchise Investment Protection Act, in Washington.
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are 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,
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, in Washington, a noncompetition covenant is only enforceable against an employee of a Casiola franchisee if the employee's annualized earnings exceed $100,000. This figure will be adjusted annually for inflation. This is based on Washington state law RCW 49.62.020.
This means that if a Casiola franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning more than $100,000 per year, with adjustments for inflation. If the employee earns less than this amount, the non-compete agreement is considered void and unenforceable under Washington law.
This provision protects lower-earning employees from being unduly restricted in their future employment opportunities. It also ensures that Casiola's franchise agreement complies with Washington state law, as any conflicting provisions within the agreement would be deemed unenforceable in Washington.