In Washington, what is the minimum annualized earnings threshold for a Dog Haus franchisee employee for a noncompetition covenant to be enforceable?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act, 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 act
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, in Washington, a noncompetition covenant is unenforceable against a Dog Haus franchisee's employee if the employee's annualized earnings from the franchisee are less than $100,000 per year. This amount will be adjusted annually for inflation. This protection is provided under RCW 49.62.020.
For a prospective Dog Haus franchisee in Washington, this means that any non-compete agreements with employees are only enforceable if the employee earns above this threshold. This is a crucial consideration when drafting employment agreements and understanding the limitations on enforcing non-compete clauses.
Furthermore, the FDD states that any provisions in the franchise agreement or other documents that conflict with these limitations are void and unenforceable in Washington. This ensures that the state law takes precedence over any conflicting terms in the franchise agreement, providing additional protection for employees of Dog Haus franchisees.