What disclaimer must a 7 Brew franchisee include in all employee-facing materials regarding the employer status of store employees?
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 7 Brew's 2025 Franchise Disclosure Document, franchisees must include a specific disclaimer in all employee-facing materials. This disclaimer must clearly state that the franchisee is the sole employer of the store's employees. It must also state that 7 Brew, as the franchisor, and its affiliates are not the employers of the store's employees. The disclaimer should emphasize that 7 Brew and its affiliates do not engage in any employer-type activities for which only franchisees are responsible. These activities include employee selection, promotion, termination, determining hours worked, setting rates of pay, providing benefits, assigning work, handling discipline, adjusting grievances and complaints, and managing working conditions.
In addition to including 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 as further clarification of the employment relationship.
This requirement is fairly standard in franchising, as it protects the franchisor from potential liability related to employment practices at the franchisee level. By ensuring that employees are clearly informed about who their employer is, 7 Brew aims to maintain a distinct legal separation between the franchisor and the franchisee's business operations. This also ensures that the franchisee understands their responsibilities as an employer.