What are the earnings thresholds for a noncompetition covenant to be enforceable against an independent contractor of a Zoomin Groomin franchisee?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
ments require a franchisee to reimburse the franchisor for court costs or expenses, including attorneys' fees, such provision applies only if the franchisor is the prevailing party in any judicial or arbitration proceeding.
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- Noncompetition Covenants. Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when an
Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, noncompetition covenants have specific earnings thresholds to be enforceable against independent contractors working for a franchisee, specifically in the state of Washington. For an independent contractor, the noncompetition covenant is void and unenforceable if their annualized earnings from the party seeking enforcement do not exceed $250,000 per year. This amount will be adjusted annually for inflation. This means that if an independent contractor's earnings are below this threshold, the noncompetition agreement cannot be legally enforced against them in Washington.
This provision is based on RCW 49.62.030, a Washington state law. Any conflicting provision in the franchise agreement or other documents is void and unenforceable in Washington. This addendum ensures that Zoomin Groomin franchisees operating in Washington comply with state law regarding noncompetition agreements.
For a prospective Zoomin Groomin franchisee in Washington, this information is crucial for understanding the limitations on noncompetition agreements with independent contractors. It clarifies the earnings level at which such agreements become enforceable, protecting lower-earning independent contractors from overly restrictive covenants. Franchisees should be aware of the annual adjustments for inflation to ensure continued compliance with the law. Franchisees should consult with a legal professional to ensure full compliance with all applicable laws and regulations regarding noncompetition agreements.