In Washington, what is the minimum annualized earnings threshold for an independent contractor of a Floyds 99 franchisee 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 Floyds 99's 2025 Franchise Disclosure Document, in Washington, a noncompetition covenant is unenforceable against an independent contractor of a franchisee unless the independent contractor's earnings, when annualized, exceed $250,000 per year. This amount will be adjusted annually for inflation.
This means that if a Floyds 99 franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning above this threshold. If the earnings are below this level, the non-compete agreement is considered void and unenforceable under Washington law.
This provision protects independent contractors from being unduly restricted in their ability to work after leaving a Floyds 99 franchise. It also ensures that franchisees cannot use non-compete agreements to suppress competition unless the contractor's earnings justify such a restriction. Prospective franchisees in Washington should be aware of this limitation when considering non-compete agreements with independent contractors.