What confirmation regarding employee certifications must a 7 Brew franchisee provide periodically?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
You must include a clear disclaimer in all of the Store's employee-facing materials that you (and only you) are the employer of Store employees 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 for which only franchisees are responsible, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. You also must obtain an acknowledgment from all Store employees that you (and not we or our affiliates) are their employer.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, franchisees must confirm that they are the employer of their store's employees. Specifically, 7 Brew franchisees must include a clear disclaimer in all employee-facing materials stating that the franchisee is the employer of the store's employees, and that 7 Brew, as the franchisor, is not. This disclaimer should clarify that 7 Brew and its affiliates do not engage in employer-type activities, such as employee selection, promotion, termination, pay rates, and working conditions, for which only franchisees are responsible.
In addition to the disclaimer, 7 Brew requires franchisees to obtain an acknowledgment from all store employees confirming that the franchisee, and not 7 Brew or its affiliates, is their employer. This acknowledgment serves to reinforce the distinct roles and responsibilities of the franchisee as the employer and 7 Brew as the franchisor.
This requirement is likely in place to protect 7 Brew from potential legal liabilities related to employment practices at the franchise level. By ensuring that employees understand the employment relationship, 7 Brew aims to maintain a clear separation of responsibilities and avoid co-employment claims. This is a fairly standard practice in franchising, as franchisors generally want to avoid being considered the employer of the franchisee's employees.