Is 7 Brew responsible for the franchisee's labor relations?
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.
In addition, Brand Standards do not include any personnel policies or procedures, or any Store security-related policies or procedures, we choose to make available to you in the Operations Manual or otherwise for your optional use. You will determine to what extent, if any, these optional policies and procedures might apply to your Store's operation. You and we agree that we do not dictate or control labor or employment matters for franchisees and 7 BREW Store employees.
We (and our affiliates) will not exercise direct or indirect control over the working conditions of Store personnel, except to the extent such indirect control is related to our legitimate interest in protecting the quality of our products, services, or brand. We (and our affiliates) do not share or codetermine 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.
Under no circumstances will we control the forms or terms of employment agreements you use with Store employees or otherwise be responsible for your labor relations or employment practices.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees are solely responsible for their labor relations and employment practices. 7 Brew maintains control over brand standards, approved products, and overall system operations, but explicitly does not dictate or control labor and employment matters. Franchisees have the authority over employee selection, promotion, termination, pay rates, benefits, and working conditions.
This means that as a 7 Brew franchisee, you have complete autonomy in managing your employees. You are responsible for all aspects of the employer-employee relationship, including hiring, firing, and setting wages. 7 Brew will not be involved in these decisions, ensuring that you can tailor your employment practices to your specific business needs and local market conditions.
To ensure clarity, franchisees must inform their employees that they (the franchisee) are the employer, and that 7 Brew, as the franchisor, is not involved in employment-related activities. Franchisees must also obtain an acknowledgment from all store employees confirming this understanding. This separation of responsibilities protects 7 Brew from potential liabilities related to employment practices at the franchise level and reinforces the franchisee's role as the direct employer.
While 7 Brew may provide optional personnel policies or security procedures in the Operations Manual, franchisees are not obligated to implement them. The decision to use these policies remains at the franchisee's discretion. However, 7 Brew does retain the right to protect the quality of their products, services, and brand, which may indirectly affect working conditions. Overall, franchisees maintain control over their store's management and operation, including the implementation and maintenance of brand standards.