How often is the earnings threshold adjusted for inflation regarding noncompetition covenants for Deck Medic franchisee employees 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, in the state of Washington, the earnings threshold related to noncompetition covenants for franchisee employees is adjusted annually for inflation. Specifically, a noncompetition covenant is unenforceable against an employee if their annualized earnings from the party seeking enforcement exceed $100,000 per year. This amount is subject to annual adjustments to account for inflation.
This provision is based on RCW 49.62.020, and it means that Deck Medic franchisees in Washington cannot enforce non-compete agreements against employees earning less than the inflation-adjusted threshold. This protects lower-earning employees from being restricted in their future employment opportunities.
For independent contractors of a Deck Medic franchisee in Washington, a similar rule applies under RCW 49.62.030. A noncompetition covenant is unenforceable if the independent contractor's annualized earnings from the enforcing party exceed $250,000 per year, also adjusted annually for inflation. Any conflicting provisions in the Franchise Agreement are void and unenforceable in Washington, ensuring compliance with state law.