What is Deck Medic prohibited from doing regarding employees of the franchisor 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, including an employee of a franchisee, in Washington unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation.
This amendment to the franchise agreement in Washington protects employees, including those working for Deck Medic franchisees, from non-compete agreements if their annualized earnings are $100,000 or less. This means Deck Medic cannot enforce a non-competition agreement against a franchisee's employee in Washington making $100,000 or less annually.
For a prospective Deck Medic franchisee in Washington, this means they have limited ability to restrict employees earning $100,000 or less from working for a competitor after leaving their employment. Franchisees should be aware of this limitation when hiring and training employees, as it may impact their ability to retain skilled workers or prevent them from using acquired knowledge to benefit competing businesses. Franchisees should consult with a legal professional to ensure compliance with Washington state law regarding non-competition agreements.