Must a 7 Brew franchisee obtain an acknowledgment from all store employees regarding their employer?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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;
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 clearly communicate to all store employees that the franchisee is their 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 protection, the 7 Brew franchisee must obtain a formal acknowledgment from each store employee confirming that they understand the franchisee (and not 7 Brew or its affiliates) is their employer. This acknowledgment serves as documented proof that employees are aware of the employment relationship.
This requirement is in place to protect 7 Brew from potential liabilities related to employment practices at the franchise level. By ensuring that employees understand who their employer is, 7 Brew aims to avoid any confusion or legal issues that could arise from perceived co-employment. This is a fairly standard practice in franchising, as franchisors generally want to maintain a clear separation between their responsibilities and those of their franchisees regarding employment matters.