In Washington, what is the minimum annualized earnings threshold for an independent contractor 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 only enforceable against an independent contractor of an Even Hotels franchisee if the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year. This amount will be adjusted annually for inflation.
This stipulation is pursuant to RCW 49.62.030, a Washington state statute. Any provisions within the franchise agreement or other documents that conflict with this limitation are considered void and unenforceable in Washington. This means that Even Hotels franchisees in Washington cannot enforce non-compete agreements against independent contractors who earn less than $250,000 annually, protecting the contractors' ability to work for others.
Prospective Even Hotels franchisees in Washington should be aware of this limitation when considering non-competition agreements with independent contractors. They should consult with legal counsel to ensure their agreements comply with Washington law and to understand the implications of this earnings threshold. This also means that Even Hotels cannot enforce non-compete agreements against independent contractors who earn less than $250,000 annually, protecting the contractors' ability to work for others.