Is the amount of $100,000 for employee earnings related to non-competition covenants for Kitchen Solvers franchisees in Washington adjusted annually for inflation?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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 (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is vo
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the $100,000 threshold related to non-competition covenants for employees of Kitchen Solvers franchisees in Washington is adjusted annually for inflation. Specifically, pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee of a franchisee unless the employee's earnings, when annualized, exceed $100,000 per year, and this amount is adjusted annually for inflation. A similar provision applies to independent contractors, with a threshold of $250,000 per year, also adjusted annually for inflation.
This means that Kitchen Solvers franchisees in Washington cannot enforce non-compete agreements against employees or independent contractors who earn less than the adjusted amounts. The adjustment for inflation ensures that the earnings threshold keeps pace with the changing cost of living, maintaining the real value of the earnings requirement over time.
For a prospective Kitchen Solvers franchisee, this information is crucial for understanding the limitations on non-competition agreements in Washington. It clarifies the circumstances under which a franchisee can restrict former employees or contractors from working for competitors. Franchisees need to be aware of these legal limitations to avoid drafting unenforceable agreements and to ensure compliance with Washington state law.
It is important for franchisees to stay informed about the annually adjusted earnings thresholds to ensure their non-competition agreements remain enforceable. They should consult with legal counsel to understand the current thresholds and how they apply to their specific circumstances.