What Washington Revised Code section addresses noncompetition covenants for employees of a Casiola franchisee?
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, Washington Revised Code (RCW) 49.62.020 addresses noncompetition covenants for employees of a Casiola franchisee. This statute states that a noncompetition covenant is void and unenforceable against an employee, including a franchisee's employee, unless the employee's annualized earnings from the party seeking enforcement exceed $100,000 per year. This amount will be adjusted annually for inflation.
Additionally, RCW 49.62.030 addresses noncompetition covenants for independent contractors of a Casiola franchisee. It states that such covenants are void and unenforceable unless the independent contractor's annualized earnings from the enforcing party exceed $250,000 per year, also adjusted annually for inflation.
Therefore, any provisions in the franchise agreement that conflict with these limitations on noncompetition covenants are void and unenforceable in Washington. Casiola franchisees in Washington should be aware of these regulations regarding noncompetition agreements for their employees and independent contractors to ensure compliance with state law.