In Washington, what is the minimum annualized earnings threshold for a noncompetition covenant to be enforceable against an employee of a Deer Solution franchisee?
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 means that if a Deer Solution franchisee in Washington wants to enforce a non-compete agreement against one of their employees, that employee must be earning more than $100,000 annually. If the employee earns less than this amount, the non-compete agreement is void and unenforceable under Washington law. This provision is designed to protect lower-earning employees from being unduly restricted in their future employment opportunities.
It is important to note that this threshold applies specifically to employees. The FDD also states that a different threshold of $250,000 applies to independent contractors. Franchisees should be aware of these distinctions and consult with legal counsel to ensure their non-competition agreements comply with Washington state law. Any provisions in the Deer Solution Franchise Agreement that conflict with these limitations are void and unenforceable in Washington.