What law governs the enforcement of noncompetition covenants against employees of Itan franchisees in Washington?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ton Franchise Investment Protection Act, in Washington.
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- 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.
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- Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Pursuant to RCW 49.62.020, a non
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, in Washington, RCW 49.62.020 governs the enforcement of noncompetition covenants against employees of Itan franchisees. This statute states that a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount is subject to annual adjustments for inflation.
Furthermore, RCW 49.62.030 dictates that a noncompetition covenant is void and unenforceable against an independent contractor of an Itan franchisee unless their annualized earnings from the enforcing party exceed $250,000 per year, also adjusted annually for inflation.
Therefore, any provisions within the franchise agreement or elsewhere that conflict with these limitations are considered void and unenforceable in Washington. This ensures that Itan franchisees in Washington adhere to state law regarding non-compete agreements for their employees and independent contractors, providing a level of protection for workers earning below the specified thresholds.