What are the earnings thresholds that determine the enforceability of noncompetition covenants against employees and independent contractors of a Churchs Chicken franchisee in Washington?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
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- Transfer fees are collectable to the extent that they reflect Cajun's reasonable estimated or actual costs 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 unless the independent contractor's earnings from the party seeking enforc
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, Washington state law impacts the enforceability of noncompetition covenants for both employees and independent contractors working for a franchisee. For an employee of a Churchs Chicken franchisee, a noncompetition covenant is void and unenforceable unless the employee's annualized earnings from the franchisee exceed $100,000 per year. This earnings threshold will be adjusted annually for inflation.
Similarly, for an independent contractor of a Churchs Chicken franchisee, a noncompetition covenant is unenforceable unless their annualized earnings from the franchisee exceed $250,000 per year. Like the employee threshold, this amount is also subject to annual adjustments for inflation. These stipulations are based on Washington statutes RCW 49.62.020 and RCW 49.62.030, respectively.
These regulations mean that Churchs Chicken franchisees in Washington cannot enforce non-compete agreements against employees or independent contractors who do not meet these minimum earnings requirements. Any provisions in the franchise agreement that conflict with these limitations are void and unenforceable in Washington. This addendum ensures that the franchise agreement complies with Washington state law regarding noncompetition covenants.