In Washington, what is the minimum annualized earnings an independent contractor 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 unenforceable against an independent contractor of a Fat Shack franchisee if the independent contractor's earnings from the party seeking enforcement, when annualized, do not exceed $250,000 per year. This amount will be adjusted annually for inflation. This stipulation is based on RCW 49.62.030.

This means that if a Fat Shack franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, they can only do so if that contractor earns more than $250,000 annually. If the contractor earns less than this amount, the non-compete agreement is considered void and unenforceable under Washington law.

This provision protects lower-earning independent contractors from being unduly restricted in their ability to work for others after their engagement with a Fat Shack franchise ends. It also means that Fat Shack franchisees in Washington need to be aware of this earnings threshold when drafting and attempting to enforce non-competition agreements with their independent contractors.