What is the minimum annualized earnings for an employee of a Learningrx franchisee in Washington for a non-competition covenant to be enforceable?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
stment Protection Act, Chapter 19.100 RCW shall prevail.
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is 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 co
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, in the state of Washington, a non-competition covenant is only enforceable against an employee of a Learningrx franchisee if the employee's annualized earnings exceed $100,000 per year. This amount will be adjusted annually for inflation.
This stipulation is based on Washington state law (RCW 49.62.020), which Learningrx must adhere to within that state. The same law states that non-competition covenants are void and unenforceable against independent contractors of a franchisee unless their earnings exceed $250,000 per year, also adjusted annually for inflation.
This means that if a Learningrx franchisee in Washington wants to enforce a non-compete agreement with an employee, they must ensure that the employee's compensation is above the annually adjusted $100,000 threshold. Otherwise, the non-compete agreement is legally void. This protects lower-earning employees from being restricted in their future employment opportunities. Similarly, independent contractors must earn above the annually adjusted $250,000 threshold for a non-compete to be enforceable.