In Washington, what is the minimum annualized earnings threshold for a Kitchen Solvers franchisee's independent contractor 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, specifically the addendum for Washington state, a noncompetition covenant is void and unenforceable against an independent contractor of a Kitchen Solvers franchisee if the independent contractor's earnings from the party seeking enforcement, when annualized, do not exceed $250,000 per year. This amount will be adjusted annually for inflation. This stipulation is in accordance with RCW 49.62.030.
This means that if a Kitchen Solvers franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning more than $250,000 annually. If the contractor earns less than this threshold, the non-compete agreement is not legally enforceable. This protects lower-earning independent contractors from being unduly restricted in their ability to work for others after their engagement with the Kitchen Solvers franchisee ends.
This provision is important for prospective Kitchen Solvers franchisees in Washington to understand, as it sets a clear financial threshold for the enforceability of non-compete agreements with independent contractors. Franchisees need to be aware of this limitation when drafting and implementing such agreements. It is also important to note that the $250,000 threshold is subject to annual adjustments for inflation, so franchisees should stay informed about the current applicable amount.