Under what earnings threshold is a noncompetition covenant void and unenforceable against a Chatime franchisee's employee in Washington?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
a violation of the Washington Franchise Investment Protection Act, in Washington.
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- A release or waiver of rights executed by a franchisee will not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settl
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is void and unenforceable against an employee of a Chatime franchisee if the employee's annualized earnings from the party seeking enforcement do not exceed $100,000 per year. This figure will be adjusted annually for inflation. This protection is codified under RCW §49.62.020.
This provision means that Chatime franchisees in Washington cannot enforce non-compete agreements against employees who earn less than the specified threshold. This limitation is designed to protect lower-income workers from being unduly restricted in their future employment opportunities.
Chatime franchisees operating in Washington should be aware of this legal restriction and ensure that their employment agreements comply with Washington law. Any provisions in the Franchise Agreement or other documents that conflict with these limitations are void and unenforceable in Washington.