In Washington, what is the minimum annualized earnings threshold for an independent contractor of a Crisp & Green franchisee for a noncompetition covenant to be enforceable?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ease or waiver of rights executed by a franchisee may not include rights under the WashingtonFranchise InvestmentProtectionActor anyruleororderthereunder exceptwhen executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are representedbyindependent counsel. Provisionssuchasthosewhichunreasonably restrict orlimit the statute oflimitations period for claims underthe Act, orrights orremedies underthe Actsuch 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 costsin effecting a transfer.
PursuanttoRCW49.62.020, a noncompetitioncovenantis void and unenforceable against an employee,includinganemployeeo
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 independent contractor of a Crisp & Green franchisee if the independent contractor's earnings from the party seeking enforcement, when annualized, do not exceed $250,000 per year. This amount will be adjusted annually for inflation. This is based on Revised Code of Washington (RCW) 49.62.030.
This means that if a Crisp & Green franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning at least $250,000 annually. If the contractor earns less than this amount, the non-compete agreement is void and unenforceable. This threshold is designed to protect lower-income workers from being unduly restricted in their ability to find work after leaving a job.
This provision is specific to Washington state law, and any conflicting provisions in the Crisp & Green Franchise Agreement or other related documents are void and unenforceable in Washington. Prospective franchisees in Washington should be aware of this limitation when considering non-compete agreements with independent contractors. It is important to note that the $250,000 threshold is subject to annual adjustments for inflation, so franchisees should stay informed of the current threshold.
This requirement ensures that Crisp & Green franchisees in Washington comply with state law regarding non-competition agreements. It also protects independent contractors working for franchisees by setting a minimum earnings threshold for non-competes to be enforceable. Franchisees should consult with legal counsel to ensure their non-compete agreements comply with Washington law.