What law governs non-competition covenants for Pump It Up franchisees in Washington?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
, in Washington.
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- 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.
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- Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceab
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, non-competition covenants in Washington are governed by RCW 49.62.020 and RCW 49.62.030. These laws stipulate that a noncompetition covenant is void and unenforceable against an employee of a Pump It Up 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.
Additionally, a noncompetition covenant is void and unenforceable against an independent contractor of a Pump It Up franchisee unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year, also adjusted annually for inflation. The FDD states that any provisions in the franchise agreement that conflict with these limitations are void and unenforceable in Washington.
This means that Pump It Up franchisees in Washington cannot enforce non-compete agreements against their employees or independent contractors unless those individuals meet the specified earnings thresholds. This addendum ensures that the franchise agreement complies with Washington state law regarding non-competition covenants, protecting lower-earning workers from overly restrictive agreements.