In Washington, what is the minimum annualized earnings threshold for a Kitchen Solvers franchisee's employee for a noncompetition covenant to be enforceable?
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 Washington, a noncompetition covenant is only enforceable against an employee of a Kitchen Solvers franchisee if the employee's annualized earnings exceed $100,000. This amount will be adjusted annually for inflation. This protection is provided under RCW 49.62.020.
For independent contractors of a Kitchen Solvers franchisee in Washington, a noncompetition covenant is only enforceable if their annualized earnings exceed $250,000, also subject to annual inflation adjustments, as stipulated by RCW 49.62.030.
These stipulations mean that Kitchen Solvers franchisees in Washington cannot enforce non-compete agreements against employees or independent contractors who do not meet these minimum earnings thresholds. Any conflicting provisions in the franchise agreement are void and unenforceable in Washington.