If provisions in the City Publications franchise agreement conflict with Washington's noncompetition covenant laws, what is the result?
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 the 2025 City Publications Franchise Disclosure Document, any provisions in the franchise agreement that conflict with Washington's noncompetition covenant laws are void and unenforceable in Washington state. This protection extends to employees and independent contractors of a City Publications franchisee.
Specifically, 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, the threshold is $250,000 per year, also adjusted annually for inflation. These income thresholds mean that City Publications cannot enforce non-compete agreements against lower-earning workers in Washington.
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 City Publications itself. Any clauses in the franchise agreement that attempt to impose such restrictions are void and unenforceable in Washington. This ensures franchisees have the freedom to recruit talent without undue interference from the franchisor.