What is the minimum annualized earnings an employee of a Deck Medic franchisee must earn for a noncompetition covenant to be enforceable in Washington?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
r a violation of the Washington Franchise Investment Protection Act, in Washington.
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- A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated 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.
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- Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Pursuant
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, a noncompetition covenant is void and unenforceable against an employee of a Deck Medic franchisee in Washington unless the employee's earnings, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation. This stipulation is pursuant to RCW 49.62.020.
This means that if a Deck Medic 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 not legally enforceable.
This provision protects lower-earning employees from being unduly restricted in their future employment opportunities. It also means that Deck Medic franchisees in Washington need to be aware of this earnings threshold when drafting and attempting to enforce non-compete agreements with their employees. They should consult with legal counsel to ensure their agreements comply with Washington law.