What actions is Mrcool prohibited from restricting a franchisee from doing under RCW 49.62.060?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
or in connection with the sale of the franchise, or a violation of the Washington Franchise Investment Protection Act, in Washington.
-
- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
-
- A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act 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
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool FDD, Chapter 49.62 RCW limits the use of non-competition agreements and may supersede the Franchise Agreement's non-competition provisions.
Washington law stipulates that an employee noncompete covenant is unenforceable unless the employee's annual earnings exceed $100,000. Additionally, there is a presumption that any non-compete covenant lasting longer than 18 months is unreasonable and unenforceable.
Mrcool is prohibited from restricting, restraining, or prohibiting a franchisee from soliciting or hiring any employee of Mrcool or a franchisee of the same franchisor. Any contractual term that violates this provision may not be enforceable.