In Washington, what is the minimum annualized earnings threshold for an employee of a Crisp & Green franchisee for a noncompetition covenant to be enforceable?
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). In addition, a noncompetition covenant is void and unenforceable against an
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 unenforceable against an employee of a Crisp & Green franchisee if the employee's annualized earnings from the franchisee are less than $100,000 per year. This figure will be adjusted annually for inflation. This is based on Washington state law RCW 49.62.020.
This means that if a Crisp & Green franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning at least $100,000 annually (adjusted for inflation). If the employee earns less than this amount, the non-compete agreement is void and unenforceable under Washington law. This protects lower-earning employees from being restricted in their future employment opportunities.
Furthermore, any provisions within the Crisp & Green Franchise Agreement or other related documents that conflict with these limitations on noncompetition covenants are also void and unenforceable in Washington. This ensures that the state law takes precedence over any conflicting terms in the franchise agreement, providing additional protection for employees of Crisp & Green franchisees in Washington.