What is the minimum annualized earnings threshold for a Healthsource Chiropractic independent contractor 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, a noncompetition covenant is void and unenforceable against an independent contractor in Washington unless their annualized earnings from the party seeking enforcement exceed $250,000 per year. This amount will be adjusted annually for inflation. This stipulation is based on Washington state law (RCW 49.62.030).
This means that if a Healthsource Chiropractic franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning more than $250,000 annually (adjusted for inflation). If the contractor's earnings are below this threshold, the non-compete agreement is not legally enforceable. This protects lower-earning independent contractors from being unduly restricted in their ability to work for competitors.
Prospective Healthsource Chiropractic franchisees in Washington should be aware of this legal limitation when hiring independent contractors and drafting agreements. They should consult with a legal professional to ensure their non-compete agreements comply with Washington state law and are enforceable. This also means that any provisions within the franchise agreement that conflict with these limitations are void and unenforceable in Washington.