In Washington, what is the minimum annualized earnings threshold for a Floyds 99 franchisee employee for a noncompetition covenant to be enforceable?
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 FDD, in Washington, a noncompetition covenant is void and unenforceable against an employee of a franchisee if the employee's annualized earnings from the party seeking enforcement do not exceed $100,000 per year. This amount will be adjusted annually for inflation.
This means that Floyds 99 franchisees in Washington cannot enforce non-compete agreements against employees who earn less than this threshold. This limitation is set by Washington state law (RCW 49.62.020), and any conflicting provisions in the franchise agreement or other documents are void and unenforceable in Washington.
For prospective Floyds 99 franchisees in Washington, this information is crucial for understanding the limitations on enforcing non-competition agreements with their employees. They should be aware of the current earnings threshold and how it adjusts for inflation each year to ensure compliance with state law. This also affects their ability to protect their business interests through non-compete agreements with lower-paid employees.