What is the minimum annualized earnings for an independent contractor 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 unenforceable against an independent contractor working for a Learningrx franchisee if the contractor's annualized earnings from the franchisee do not exceed $250,000 per year. This amount will be adjusted annually for inflation. This stipulation is based on Washington state law (RCW 49.62.030).
This means that if a Learningrx franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, they must ensure that the contractor earns at least $250,000 annually. If the contractor earns less than this threshold, the non-compete agreement is void and unenforceable under Washington law. This protects independent contractors from being unduly restricted in their future employment opportunities if their earnings are below the specified level.
Prospective Learningrx franchisees in Washington should be aware of this legal requirement when hiring independent contractors and drafting non-competition agreements. They should consult with legal counsel to ensure that their agreements comply with Washington state law and that they understand the implications of this earnings threshold for the enforceability of non-compete provisions. This also means that the franchisee needs to stay up to date on the inflation adjustments to the minimum salary to ensure compliance.