What is the effect of RCW 49.62.030 on noncompetition covenants for Cool Binz franchisees in Washington?

According to Cool Binz's 2025 Franchise Disclosure Document, RCW 49.62.030 impacts the enforceability of noncompetition covenants for independent contractors working for Cool Binz franchisees in Washington state. Specifically, a noncompetition covenant is considered void and unenforceable against an independent contractor if their annualized earnings from the party seeking to enforce the covenant do not exceed $250,000 per year. This amount will be adjusted annually for inflation. This means that Cool Binz franchisees in Washington cannot enforce non-compete agreements against lower-earning independent contractors.

This provision offers protection to independent contractors, ensuring they are not unduly restricted in their ability to work for others if their earnings are below the specified threshold. It also means that Cool Binz must ensure that any non-compete agreements with independent contractors comply with this Washington state law.

For a prospective Cool Binz franchisee, this information is crucial for understanding the limitations on non-competition agreements within their workforce in Washington. They need to be aware that any conflicting provisions in the franchise agreement or other documents are void and unenforceable in Washington. This also affects the franchisee's ability to protect their business interests through non-compete agreements with independent contractors earning less than $250,000 annually, as adjusted for inflation.