How are the earnings thresholds for non-competition covenants adjusted annually for Cool Binz franchises in Washington?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ired by Sections 10.B.8 and 11.C of the Franchise Agreement, does not apply to claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, or any rules or order adopted thereunder, in accordance with RCW 19.100.220(2).
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- Transfer fees are collectable only to the extent that they compensate the franchisor for expenses directly incurred as a result of 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 ind
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, in Washington, non-competition covenants have specific earnings thresholds that trigger their enforceability. For an employee of a Cool Binz franchisee, a non-competition covenant is only enforceable if their annualized earnings exceed $100,000 per year. For an independent contractor of a Cool Binz franchisee, this threshold is higher, set at $250,000 per year.
These earnings thresholds are not static; they are subject to annual adjustments for inflation. This means that each year, the minimum earnings required to enforce a non-competition agreement will be recalculated to account for changes in the cost of living. The specific mechanism or index used to determine the inflation adjustment is not detailed in this document.
Cool Binz franchisees in Washington should be aware of these stipulations, as any non-competition provisions in their franchise agreements or other related documents that conflict with these earnings limitations are considered void and unenforceable in Washington state. This ensures that lower-earning employees and contractors are not unduly restricted in their ability to seek other employment or contract work.