What is the minimum annualized earnings threshold for a Healthsource Chiropractic employee for a noncompetition covenant to be enforceable in Washington?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ent, 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 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 th
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, in Washington state, a noncompetition covenant is void and unenforceable against an employee if their annualized earnings from the party seeking enforcement do not exceed $100,000 per year. This amount is subject to annual adjustments for inflation. This limitation applies to employees of a Healthsource Chiropractic franchisee.
This means that if a Healthsource Chiropractic franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning more than $100,000 annually (adjusted for inflation). If the employee earns less than this threshold, the non-compete agreement is not legally enforceable. This protects lower-earning employees from being unduly restricted in their future employment opportunities.
For a Healthsource Chiropractic franchisee in Washington, this has significant implications for drafting and enforcing non-compete agreements. They need to ensure that any non-compete agreements comply with Washington law, including the earnings threshold. Any provisions in the franchise agreement or other documents that conflict with these limitations are void and unenforceable in Washington. Franchisees should consult with legal counsel to ensure their agreements are compliant.