What is the 7 Brew franchisee's responsibility regarding communicating with store employees about 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, franchisees have specific responsibilities regarding communication with store employees about their employer status. The franchisee must clearly communicate to employees, through various means, that the franchisee is their sole 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, and even on paychecks.
This requirement aims to establish a clear distinction between the franchisor and the franchisee in terms of employment responsibilities. By ensuring employees understand who their employer is, 7 Brew seeks to avoid potential legal or labor-related issues that could arise from ambiguity about the employment relationship.
To further reinforce this understanding, the 7 Brew franchisee must obtain a signed acknowledgment from each store employee confirming that they understand the franchisee (and not 7 Brew) is their employer. This acknowledgment serves as documented proof that the employee has been informed of their employer's identity, providing an additional layer of protection for both the franchisee and the franchisor. This is a fairly standard practice in franchising to ensure clarity in employment matters.