How often is the earnings threshold adjusted for noncompetition covenants related to Cool Binz franchisees 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, the earnings thresholds related to noncompetition covenants for employees and independent contractors of Cool Binz franchisees in Washington are adjusted annually for inflation. Specifically, a noncompetition covenant is unenforceable against an employee if their annualized earnings are $100,000 or less. For independent contractors, this threshold is $250,000 per year. These earnings figures are subject to annual adjustments based on inflation.
This means that Cool Binz franchisees operating in Washington need to be aware of these annually adjusted income thresholds when implementing noncompetition agreements with their employees and independent contractors. If an employee or contractor earns less than the adjusted threshold, the noncompetition covenant will not be legally enforceable. This is particularly important for franchisees in managing their workforce and protecting their business interests within the bounds of Washington state law.
The annual adjustment for inflation is a standard practice to ensure that the earnings thresholds remain relevant over time, reflecting changes in the cost of living and economic conditions. Franchisees should consult with legal counsel to stay informed about the updated thresholds each year and to ensure their noncompetition agreements comply with current Washington state regulations. This proactive approach will help Cool Binz franchisees avoid potential legal challenges and maintain effective workforce management practices.