In Washington, what is the minimum annualized earnings threshold for a Degree Wellness franchisee's independent contractor for a noncompetition covenant to be enforceable?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
burse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities to the extent that they are caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud.
- M. Attorneys' Fees. If the franchise agreement or related agreements require a franchise
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, in Washington, a noncompetition covenant is void and unenforceable against an independent contractor of a Degree Wellness franchisee if the independent contractor's earnings from the party seeking enforcement, when annualized, do not exceed $250,000 per year. This amount will be adjusted annually for inflation. This is based on RCW 49.62.030.
This means that if a Degree Wellness franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning at least $250,000 annually. If the contractor earns less than this amount, the non-compete agreement is not legally enforceable. This threshold is subject to annual adjustments for inflation, so the actual minimum earnings may change over time.
This provision protects independent contractors from being unduly restricted in their ability to work for other businesses if their earnings are below a certain level. It also ensures that Degree Wellness franchisees are aware of the limitations on non-compete agreements in Washington and that any such agreements comply with state law. Franchisees should consult with legal counsel to ensure their agreements are compliant and enforceable.