What is the minimum annualized earnings threshold for a Pump It Up franchisee employee for a noncompetition covenant to be enforceable in Washington?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Pump It Up FDD, in Washington state, a noncompetition covenant is unenforceable against an employee of a Pump It Up franchisee unless the employee's annualized earnings exceed $100,000 per year. This threshold is subject to annual adjustments for inflation.
This means that Pump It Up franchisees in Washington cannot legally enforce non-compete agreements with employees who earn less than the annually adjusted $100,000 threshold. Any provisions in the franchise agreement that conflict with this limitation are void and unenforceable in Washington.
For a prospective Pump It Up franchisee in Washington, this information is crucial for understanding the limitations on non-competition agreements. Franchisees need to be aware of this earnings threshold when drafting employment agreements and understand that non-competes are only enforceable for higher-earning employees. This could impact hiring and retention strategies, as well as the protection of confidential business information.