What is the minimum annualized earnings threshold for a noncompetition covenant to be enforceable against an employee of a Deer Solution franchisee in Washington?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, inclu
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is unenforceable against an employee of a Deer Solution franchisee if the employee's annualized earnings from the party seeking enforcement do not exceed $100,000 per year. This amount will be adjusted annually for inflation. This protection is provided under RCW 49.62.020.
This means that if a Deer Solution franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning more than $100,000 annually (adjusted for inflation). If the employee earns less than this threshold, the non-compete agreement is void and unenforceable. This law aims to protect lower-earning employees from being unduly restricted in their future employment opportunities.
It is important for prospective Deer Solution franchisees in Washington to understand this limitation on non-competition covenants. They should consult with legal counsel to ensure that any employment agreements comply with Washington law. Additionally, franchisees should be aware that this earnings threshold is subject to annual adjustments for inflation, which could impact the enforceability of non-compete agreements in the future. This also applies to independent contractors, but the earnings threshold is different.