factual

What must a 7 Brew franchisee do to notify store personnel about their employer status?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

rmine the employment terms and conditions of the Store's employees and do not affect matters relating to the employment relationship between you and the Store's employees, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. To that end, you must notify Store personnel that 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 employertype 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.

B. No Liability for Acts of Other Party

We and you may not make any express or implied agreements, warranties, guarantees, or representations, or incur any debt, in the name or on behalf of the other or represent that our relationship with you is other than franchisor and franchisee. We will not be obligated for any damages to any person or property directly or indirectly arising from the Store's operation or the business you conduct under this Agreement.

C. Taxes

We will have no liability for any sales, use, service, occupation, excise, gross receipts, income, property, employment, or other taxes, whether levied upon you or the Store, due to the business you conduct (except for our own income taxes). You must pay those taxes and reimburse us for any taxes we must pay to any taxing authority on account of either your Store's operation or payments you make to us (except for our own income taxes).

**D.

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, franchisees are responsible for clearly communicating to store personnel that they, the franchisee, are the employer, and that 7 Brew, as the franchisor, is not. This communication must be included in employment agreements, human resources manuals, written and electronic correspondence, paychecks, and other materials.

To ensure clarity and legal compliance, 7 Brew franchisees must also obtain a formal acknowledgment from all store employees confirming that they understand the franchisee (and not 7 Brew) is their employer. This acknowledgment serves as documented proof that employees are aware of their employer's identity and the distinct roles of the franchisee and franchisor.

Furthermore, 7 Brew requires franchisees to include a clear disclaimer in all employee-facing materials. This disclaimer should explicitly state that the franchisee is the employer and that 7 Brew and its affiliates are not responsible for 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. This multifaceted approach ensures that all employees are fully informed about their employment relationship and the responsibilities of each party involved.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.