In Washington, what are the annual earnings thresholds for an employee and an independent contractor of an Even Hotels franchisee above which a noncompetition covenant becomes enforceable?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Virginia addendum applies only if the Virginia Retail Franchising Act would apply on its own, even if Holiday did not provide this addendum.
WASHINGTON ADDENDUM TO THE DISCLOSURE DOCUMENT
Notwithstanding anything to the contrary set forth in the Franchise Disclosure Document, the following provisions shall supersede and apply to all licenses offered and sold in the State of Washington:
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- If any of the provisions in the franchise disclosure document or license agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail over the inconsistent provisions of the franchise disclosure document and license agreement with regard t
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, in the state of Washington, noncompetition covenants have specific earnings thresholds for enforcement. For an employee of an Even Hotels franchisee, a noncompetition covenant is void and unenforceable unless the employee's annualized earnings from the party seeking enforcement exceed $100,000 per year. This amount is subject to annual adjustments for inflation.
For an independent contractor of an Even Hotels franchisee, a noncompetition covenant is void and unenforceable unless their annualized earnings from the enforcing party exceed $250,000 per year, also adjusted annually for inflation. These stipulations are based on Washington state law, specifically RCW 49.62.020 for employees and RCW 49.62.030 for independent contractors.
These regulations mean that Even Hotels franchise agreements cannot contain provisions conflicting with these earnings limitations in Washington. Any conflicting terms within the franchise agreement or other documents are considered void and unenforceable in Washington. This ensures that lower-earning employees and independent contractors are not unduly restricted by non-compete agreements, providing them with greater freedom to seek other opportunities.