In Washington, is the $250,000 earnings threshold for non-compete agreements for Kitchen Solvers independent contractors adjusted annually?
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's 2025 Franchise Disclosure Document, in the state of Washington, the earnings threshold for non-compete agreements concerning independent contractors is indeed adjusted annually for inflation. Specifically, if a Kitchen Solvers franchisee seeks to enforce a non-competition covenant against an independent contractor, that contractor's earnings must exceed $250,000 per year when annualized. This amount is subject to annual adjustments for inflation, as mandated by Washington state law (RCW 49.62.030).
This provision means that Kitchen Solvers franchisees in Washington must be aware of the current earnings threshold each year to ensure their non-compete agreements are enforceable. If an independent contractor's earnings fall below the adjusted threshold, the non-compete agreement is considered void and unenforceable under Washington law. This adjustment aims to protect independent contractors from overly restrictive non-compete clauses, especially when their income is not substantial.
For a prospective Kitchen Solvers franchisee, this information is crucial for understanding the limitations on enforcing non-compete agreements with independent contractors in Washington. It highlights the importance of staying informed about changes in state law and how those changes affect the enforceability of contractual agreements. Franchisees should consult with legal counsel to ensure their agreements comply with current regulations and to understand the implications of the annual inflation adjustments on the earnings threshold.