For a Floyds 99 franchise in Washington, what is the relevant statute regarding non-competition covenants for independent contractors?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF WASHINGTON
To the extent the Washington Franchise Investment Protection Act, Wash. Rev. Code §§19.100.010 – 19.100.940 applies, the terms of this Addendum apply.
Franchisees who receive financial incentives to refer franchise prospects to Franchisors may be required to register as franchise brokers under the laws of Washington State.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, the addendum for Washington state indicates that the Washington Franchise Investment Protection Act, Wash. Rev. Code §§19.100.010 – 19.100.940, applies to the extent that it is relevant. This means that the terms outlined in the addendum will be in effect within the legal framework established by this Act.
This addendum also states that franchisees who receive financial incentives for referring franchise prospects to Floyds 99 may be required to register as franchise brokers under Washington State law. This suggests that if a franchisee is compensated for bringing in new potential franchisees, they might need to comply with broker registration requirements.
However, the FDD does not explicitly address non-competition covenants for independent contractors in Washington. A prospective franchisee should seek clarification from Floyds 99 regarding the specific regulations governing non-competition agreements for independent contractors within the state to fully understand their obligations and rights.