In Washington, what are the earnings thresholds for an employee and an independent contractor of a Churchs Chicken franchisee above which a noncompetition covenant becomes enforceable?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the franchisor'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 p
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 50–55)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, in the state of Washington, noncompetition covenants have specific earnings thresholds for enforcement. For an employee of a Churchs Chicken franchisee, a noncompetition covenant is void and unenforceable unless their annualized earnings exceed $100,000. This amount is subject to annual adjustments for inflation.
For an independent contractor working for a Churchs Chicken franchisee in Washington, a noncompetition covenant is unenforceable if their annualized earnings are $250,000 or less. Like the employee threshold, this amount will also be adjusted annually to account for inflation.
These stipulations mean that Churchs Chicken franchisees in Washington cannot enforce non-compete agreements against employees or contractors earning below these specified levels. Any conflicting provisions within the franchise agreement are considered void and unenforceable in Washington. This is important for prospective franchisees to understand, as it impacts their ability to restrict former employees or contractors from working for competitors if their earnings fall below these thresholds.