For a Floyds 99 franchise in Washington, what is the effect of provisions conflicting with limitations on noncompetition covenants?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
in a place mutually agreed upon at the time of the arbitration
or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
Provisions such as those whic
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Washington state law places specific limitations on noncompetition covenants. For an employee of a Floyds 99 franchisee, a noncompetition covenant is void and unenforceable unless the employee's annualized earnings exceed $100,000, which is adjusted annually for inflation. Similarly, for an independent contractor of a franchisee, such a covenant is unenforceable unless their annualized earnings exceed $250,000, also adjusted for inflation.
This means that any provisions within the Floyds 99 franchise agreement or related documents that contradict these limitations are legally void and unenforceable in Washington. Floyds 99 cannot enforce non-compete agreements against employees or contractors who do not meet the specified earnings thresholds. This protection is provided under RCW 49.62.020 and RCW 49.62.030.
For a prospective Floyds 99 franchisee in Washington, this addendum provides significant protection for their employees and contractors. It ensures that they can only enforce non-compete agreements against high-earning individuals, preventing undue restrictions on the employment opportunities of lower-income workers. This aligns with Washington's broader efforts to protect employee mobility and promote fair competition. Franchisees should be aware of these limitations and ensure their employment agreements comply with Washington law to avoid potential legal challenges.