For a Floyds 99 franchise in Washington, what happens to the earnings threshold for non-compete agreements annually?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 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). As a result, any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
Based on the 2025 Floyds 99 Franchise Disclosure Document, there is no mention of an earnings threshold related to non-compete agreements that adjusts annually for franchises in Washington. However, the FDD does state that the Washington Franchise Investment Protection Act may supersede the franchise agreement, particularly in areas of termination and renewal. Additionally, Washington law prohibits Floyds 99 from restricting a franchisee from soliciting or hiring any employee of another franchisee or the franchisor. Any conflicting provisions in the franchise agreement are considered void and unenforceable in Washington.
Furthermore, any release or waiver of rights executed by a Floyds 99 franchisee cannot include rights under the Washington Franchise Investment Protection Act or any rules adopted under it. This ensures that franchisees in Washington retain their statutory rights, regardless of any agreements they may sign. The FDD also specifies that in any arbitration or mediation involving a franchise purchased in Washington, the site will be in Washington or a mutually agreed-upon location.
Given the absence of specific details about an annually adjusted earnings threshold for non-compete agreements in Washington, it is crucial for prospective franchisees to seek clarification from Floyds 99 regarding the precise terms and enforceability of non-compete clauses in the state. They should also consult with a legal professional familiar with Washington franchise law to fully understand their rights and obligations.