In Washington, what is the minimum annualized earnings an employee of a Fat Shack franchisee must have for a noncompetition covenant to be enforceable?

According to Fat Shack's 2025 Franchise Disclosure Document, in Washington, a noncompetition covenant is only enforceable against an employee of a Fat Shack franchisee if the employee's annualized earnings exceed $100,000. This figure will be adjusted annually for inflation. This is based on Washington state law RCW 49.62.020.

For a Fat Shack franchisee in Washington, this means that any non-compete agreements they require their employees to sign are only valid if the employee earns above this threshold. If an employee earns less than $100,000 annualized (adjusted for inflation), the non-compete agreement is void and unenforceable.

This also applies to independent contractors. A noncompetition covenant is void and unenforceable against an independent contractor of a franchisee unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation).