In Washington, what is the minimum annualized earnings threshold for a noncompetition covenant to be enforceable against an independent contractor 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 Washington, a noncompetition covenant is void and unenforceable against an independent contractor of a Deer Solution franchisee unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year. This amount will be adjusted annually for inflation. This stipulation is based on RCW 49.62.030.
This means that if a Deer Solution franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning more than $250,000 annually. If the contractor earns less than this amount, the non-compete agreement is not legally enforceable. This threshold is designed to protect lower-income workers from being unduly restricted in their ability to find work after their contract ends.
Prospective Deer Solution franchisees in Washington should be aware of this law when drafting agreements with independent contractors. They should also stay informed about annual inflation adjustments to the $250,000 threshold to ensure their non-compete agreements are enforceable. This Washington State amendment to the Deer Solution Franchise Agreement takes precedence over any conflicting provisions in the standard franchise agreement.