In Washington, what is the minimum annualized earnings threshold for a noncompetition covenant to be enforceable against an employee of an area representative of Focalpoint Coaching?
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, in Washington, a noncompetition covenant is void and unenforceable against an employee of a franchisee (which would include an employee of an area representative) unless the employee's earnings, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation. This is pursuant to RCW 49.62.020.
This means that if a Focalpoint Coaching franchisee in Washington wants to enforce a non-compete agreement against one of their employees, that employee must be making at least $100,000 per year (adjusted for inflation). If the employee makes less than this amount, the non-compete agreement is not enforceable. This protects lower-earning employees from being restricted in their future employment opportunities.
This provision is specific to Washington state law, and any conflicting terms in the franchise agreement are void and unenforceable in Washington. Prospective Focalpoint Coaching franchisees in Washington should be aware of this limitation on non-compete agreements and factor it into their hiring and employment practices. They should consult with a legal professional to ensure their employment agreements comply with Washington law.