Is the $100,000 annual earnings threshold for Focalpoint Coaching employees' non-competition covenants subject to change?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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 which 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
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the $100,000 annual earnings threshold for an employee's non-competition covenant is subject to change. Specifically, pursuant to Washington state law RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee if their earnings from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation.
This means that the actual earnings threshold above which a non-compete agreement is unenforceable for Focalpoint Coaching employees in Washington may increase over time due to inflation. As a result, a franchisee operating in Washington needs to be aware that the specific income level that triggers the non-compete restrictions could change each year.
For a Focalpoint Coaching franchisee, this has implications for managing employees and independent contractors. The franchisee must stay informed about the annually adjusted earnings thresholds to ensure their non-competition agreements are enforceable. They should consult with legal counsel to understand their obligations and rights under Washington law and to ensure their agreements comply with current regulations.