What happens to provisions in the City Publications franchise agreement that conflict with Washington's noncompetition covenant limitations?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
fter 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 franchise agreement or el
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, any provisions within the franchise agreement that clash with Washington's noncompetition covenant limitations are considered void and unenforceable in Washington state. This protection extends to employees and independent contractors of City Publications franchisees.
Specifically, a noncompetition covenant is unenforceable against an employee if their annualized earnings from the party seeking enforcement exceed $100,000 per year, a figure that will be adjusted annually for inflation. For independent contractors, this threshold is $250,000 per year, also subject to annual inflation adjustments.
Furthermore, City Publications is prohibited from restricting a franchisee from soliciting or hiring employees of other franchisees within the City Publications system, or from soliciting or hiring any employee of the franchisor itself. Any clauses attempting to impose such restrictions are also void and unenforceable in Washington. This ensures franchisees in Washington have greater flexibility in hiring and managing their workforce, and that employees and contractors earning below the specified thresholds are not unduly restricted by non-compete agreements.