In Washington, what is the minimum annualized earnings threshold for a Dog Haus franchisee independent contractor 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 the state of Washington, a noncompetition covenant is unenforceable against an independent contractor of a franchisee if the independent contractor's earnings from the enforcing party, when annualized, do not 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 Dog Haus franchisee in Washington hires an independent contractor, any agreement preventing that contractor from working for a competitor after their engagement with the Dog Haus franchise is void unless the contractor earns more than $250,000 annually. This protects lower-earning independent contractors from being unduly restricted in their future employment opportunities.
Dog Haus franchisees in Washington should be aware of this earnings threshold to ensure that any noncompetition agreements they attempt to enforce against independent contractors comply with Washington state law. Any conflicting provisions within the franchise agreement or other related documents are considered void and unenforceable in Washington.