What is the effect of RCW 49.62.020 on noncompetition covenants for Kitchen Solvers franchisee employees in Washington?
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, RCW 49.62.020 impacts the enforceability of noncompetition covenants for franchisee employees in Washington state. Specifically, a noncompetition covenant is void and unenforceable against a Kitchen Solvers franchisee's employee unless their annualized earnings from the party seeking enforcement exceed $100,000 per year. This amount will be adjusted annually for inflation. This means that Kitchen Solvers franchisees in Washington cannot enforce non-compete agreements against employees earning less than this threshold.
Similarly, RCW 49.62.030 renders noncompetition covenants void and unenforceable against independent contractors of a Kitchen Solvers franchisee if their annualized earnings from the enforcing party are less than $250,000 per year, also adjusted annually for inflation. Therefore, Kitchen Solvers franchisees need to be aware that any non-compete agreements with independent contractors earning below this amount are not enforceable in Washington.
As a result of these regulations, any provisions within the Kitchen Solvers franchise agreement or other related documents that conflict with these earning-based limitations on noncompetition covenants are void and unenforceable in Washington. This ensures that Kitchen Solvers franchisees operating in Washington must comply with state law regarding non-compete agreements for both employees and independent contractors, and cannot rely on conflicting terms in the franchise agreement.