What is Deck Medic prohibited from doing regarding employees of its franchisees in Washington?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
iolation 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 settleme
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 from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount is subject to annual adjustments for inflation.
This means that Deck Medic cannot enforce a non-compete agreement against a franchisee's employee in Washington if that employee earns less than the specified annual amount. This limitation is in place to protect lower-earning employees from being unduly restricted in their ability to seek other employment opportunities.
For a prospective Deck Medic franchisee in Washington, this has implications for hiring and employee agreements. Franchisees need to be aware that non-compete agreements will only be enforceable against higher-earning employees. They should consult with legal counsel to ensure their employment agreements comply with Washington law and to understand the limitations on enforcing non-compete clauses.