What happens to provisions in the Crave Cookies franchise agreement that conflict with the limitations on noncompetition covenants in Washington?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
settlement after 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.
Franchisor will not collect any initial fees until it has provided its pre-opening obligations under the Franchise Agreement and the franchisee is open for business.
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 enfor
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, any provisions within the franchise agreement that conflict with Washington state's limitations on noncompetition covenants are considered void and unenforceable in Washington. This is due to specific Revised Code of Washington (RCW) statutes that place restrictions on noncompetition agreements.
Specifically, RCW 49.62.020 states that a noncompetition covenant is void and unenforceable against an employee of a Crave Cookies franchisee if the employee's annualized earnings from the party seeking enforcement do not exceed $100,000 per year, which is adjusted annually for inflation. Similarly, RCW 49.62.030 makes such covenants void and unenforceable against an independent contractor of a franchisee unless their annualized earnings exceed $250,000 per year, also adjusted for inflation.
Furthermore, RCW 49.62.060 prohibits Crave Cookies as the franchisor from restricting or prohibiting a franchisee from soliciting or hiring any employee of another franchisee within the Crave Cookies system or any employee of the franchisor itself. Therefore, any conflicting terms in the franchise agreement or other related documents will not be enforced in Washington state, providing additional protection to franchisees and their employees and contractors.