What must a 7 Brew franchisee communicate to store employees regarding their employer?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
l and courteous service to customers. However, you have sole responsibility and authority for your labor relations and employment practices, including, among 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 under your control at the Store.
You must designate one of your individual owners to serve as your "Managing Owner." We must pre-approve the proposed Managing Owner or any replacement Managing Owner. The Managing Owner will communicate with us directly regarding Store-related matters and must have sufficient authority to make business decisions for you and the Store. The Managing Owner's decisions will be final and will bind you. While we recommend that the Managing Owner attend certain portions of Initial Training, the Managing Owner is not required to do so.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees must clearly communicate to their store employees that the franchisee is their employer, not 7 Brew. This communication must be included in employment agreements, human resources manuals, written and electronic correspondence, paychecks, and other materials.
7 Brew franchisees must ensure that store employees understand that the franchisee is solely responsible for all employment-related activities. These activities include employee selection, promotion, termination, work hours, pay rates, benefits, work assignments, discipline, and handling grievances and complaints. The franchisee must also obtain a signed acknowledgment from each employee confirming that the franchisee, and not 7 Brew or its affiliates, is their employer.
This requirement is in place to clearly delineate the roles and responsibilities between 7 Brew as the franchisor and the franchisee as the employer. It protects 7 Brew from potential liabilities related to employment practices at the franchise location. By ensuring employees are aware of who their employer is, the risk of confusion or legal disputes involving 7 Brew is reduced.