In Washington, will the $100,000 earnings threshold for non-compete agreements related to Crisp & Green franchisee employees be adjusted for inflation?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
n 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.
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).
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is void and unenforceable against an employee of a Crisp & Green franchisee if the employee's annualized earnings from the party seeking enforcement exceed $100,000 per year. This $100,000 threshold will be adjusted annually for inflation.
Additionally, a noncompetition covenant is void and unenforceable against an independent contractor of a Crisp & Green franchisee if their annualized earnings from the enforcing party exceed $250,000 per year, which is also adjusted annually for inflation.
Any provisions within the franchise agreement that conflict with these limitations on non-compete agreements are considered void and unenforceable in Washington. This ensures that Crisp & Green franchisees in Washington adhere to state law regarding non-competition covenants for their employees and independent contractors.