In Washington state, is a Dryject franchise agreement provision that conflicts with RCW 49.62.020 or RCW 49.62.030 enforceable?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
mnified party's negligence, willful misconduct, strict liability, or fraud.
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- Attorneys' Fees. If the franchise agreement or related agreements require
a franchisee to reimburse the franchisor for court costs or expenses, including attorneys' fees, such provision applies only if the franchisor is the prevailing party in any judicial or arbitration proceeding.
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- Noncompetition Covenants. Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, provisions within the franchise agreement that conflict with specific sections of Washington state law (RCW 49.62.020 and RCW 49.62.030) are considered void and unenforceable in Washington. Specifically, RCW 49.62.020 relates to noncompetition covenants for employees, while RCW 49.62.030 concerns noncompetition covenants for independent contractors. These statutes set earnings thresholds above which such covenants may be enforceable.
For a Dryject franchisee in Washington, this means that any non-compete agreements with their employees or independent contractors are only enforceable if the employee's annualized earnings exceed $100,000 or the independent contractor's annualized earnings exceed $250,000. These amounts are subject to annual adjustments for inflation. Any clause in the Dryject franchise agreement that attempts to impose stricter non-compete terms than allowed by these statutes would be unenforceable.
This protection extends to the franchisee, ensuring they are not unduly restricted in their business operations by unenforceable non-competition agreements. Dryject franchisees should be aware of these limitations and ensure their employment agreements comply with Washington law. This also means that Dryject cannot enforce non-compete agreements against a franchisee's employees or contractors if their earnings fall below the statutory thresholds.