What is the minimum annualized earnings threshold for an employee of a Crowne Plaza licensee in Washington for a noncompetition covenant to be enforceable?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
its own, even if Holiday did not provide this addendum.
WASHINGTON ADDENDUM TO THE DISCLOSURE DOCUMENT
Notwithstanding anything to the contrary set forth in the Franchise Disclosure Document, the following provisions shall supersede and apply to all licenses offered and sold in the State of Washington:
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- If any of the provisions in the franchise disclosure document or license agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail over the inconsistent provisions of the franchise disclosure document and license agreement with regard to any license sold in Washington.
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- A release or waiver of rights executed by a licensee
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, a noncompetition covenant applied to an employee of a licensee in Washington is only enforceable if the employee's annualized earnings exceed $100,000. This threshold will be adjusted annually for inflation. This is based on Washington state law (RCW 49.62.020).
This means that Crowne Plaza franchisees in Washington cannot enforce non-compete agreements against employees who earn less than this amount. Any provisions in the franchise agreement that conflict with this limitation are void and unenforceable in Washington. This protects lower-earning employees from being restricted in their future employment opportunities.
For a prospective Crowne Plaza franchisee in Washington, this information is crucial for understanding the limitations on non-competition agreements. They must be aware that non-competes are only enforceable against employees meeting the specified earnings threshold, which is adjusted for inflation annually. This could impact their ability to protect their business interests through non-compete agreements with lower-paid staff.