What happens to provisions in the Circle K franchise agreement that conflict with limitations on noncompetition covenants in Washington?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
egotiated 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, 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 enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the fra
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, any provisions within the franchise agreement that conflict with Washington state's limitations on noncompetition covenants are considered void and unenforceable in Washington. This protection extends to both employees and independent contractors of a Circle K franchisee.
Specifically, Washington law (RCW 49.62.020) states that a noncompetition covenant is unenforceable against an employee if their annualized earnings from the party seeking enforcement do not exceed $100,000 per year, a figure that will be adjusted annually for inflation. For independent contractors of a franchisee, RCW 49.62.030 sets the earnings threshold at $250,000 per year, also adjusted annually for inflation.
Furthermore, RCW 49.62.060 prohibits Circle K from restricting a franchisee from soliciting or hiring any employee of another Circle K franchisee or any employee of Circle K itself. Therefore, any conflicting terms in the franchise agreement regarding these points would not be enforceable in Washington state.