In Washington, what is the minimum annualized earnings threshold for an employee of an Even Hotels franchisee for a noncompetition covenant to be 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:
-
- 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, a noncompetition covenant is unenforceable against an employee of an Even Hotels franchisee if the employee's annualized earnings from the franchisee are less than $100,000 per year. This threshold is subject to annual adjustments for inflation. This protection is codified in Washington state law under RCW 49.62.020.
This means that Even Hotels franchisees in Washington cannot enforce non-compete agreements against employees who earn less than the specified amount. This limitation is designed to protect lower-earning employees from being unduly restricted in their future employment opportunities. Any provisions within the franchise agreement that conflict with this state law are considered void and unenforceable in Washington.
For a prospective Even Hotels franchisee in Washington, this information is crucial for understanding the limitations on non-competition agreements. Franchisees must ensure their employment agreements comply with Washington law to avoid potential legal challenges. They should also stay informed about annual inflation adjustments to the $100,000 threshold to maintain compliance.