What acknowledgment must a 7 Brew franchisee obtain from all store employees regarding their employer?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
other things, employee selection, promotion, termination, hours worked, rates of pay, benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. Store employees are exclusively under your control at the Store. You must communicate clearly with Store employees in your employment agreements, human resources manuals, written and electronic correspondence, paychecks, and other materials that you (and only you) are their employer and that we, as the franchisor of 7 BREW Stores, and our affiliates are not their employer and do not engage in any employer-type activities (including those described above) for which only franchisees are responsible. You must obtain an acknowledgment from all Store employees that you (and not we or our affiliates) are their employer;
- (6) standards, procedures, and requirements for responding to customer complaints;
- (7) price advertising policies and maximum, minimum, or other pricing requirements for products and services the Store sells, including requirements for national, regional, and local promotions, special offers, and discounts in which some or all 7 BREW Stores must participate, in each case to the maximum extent the Law allows;
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee must obtain acknowledgment from all store employees that the franchisee, and not 7 Brew or its affiliates, is their employer. This acknowledgment is crucial to establish a clear employer-employee relationship solely between the franchisee and their staff.
This requirement is further emphasized by the stipulation that franchisees must include a clear disclaimer in all employee-facing materials, explicitly stating that the franchisee is the employer and that 7 Brew is not responsible for any employer-type activities. These activities include employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions.
By securing this acknowledgment and including the disclaimer, 7 Brew aims to protect itself from potential liabilities related to employment practices at the franchise level. This arrangement is typical in franchising, where franchisees operate as independent business owners responsible for their own staffing and employment matters. Prospective franchisees should ensure they have proper documentation and procedures in place to comply with this requirement and maintain a clear distinction between their role as the employer and 7 Brew's role as the franchisor.