For a Cool Binz franchise in Washington, will the $100,000 earnings threshold for employees regarding non-competition covenants be adjusted annually?
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, for franchisees operating in Washington state, there are specific regulations regarding non-competition covenants for employees. A noncompetition covenant is void and unenforceable against an employee if their annualized earnings from the Cool Binz franchisee do not exceed $100,000 per year.
Importantly, this $100,000 threshold is not a fixed amount. The FDD explicitly states that this amount "will be adjusted annually for inflation." This means that the minimum earnings required to enforce a non-competition agreement will increase each year to account for changes in the cost of living.
This adjustment protects lower-earning employees from being unduly restricted in their future employment opportunities. For a Cool Binz franchisee, it means they need to be aware of the current adjusted threshold each year to ensure their non-competition agreements are enforceable. Additionally, noncompetition covenants are void and unenforceable against an independent contractor if their earnings do not exceed $250,000, which will also be adjusted annually for inflation.