What happens if a party makes a finding of joint employer status between Alloy and the franchisee?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Claims include, but are not limited to, those arising from any death, personal injury or property damage (whether caused wholly or in part through our or our affiliates' active or passive negligence), latent or other defects in any Facility, or your employment practices.
If a Franchise Claim is made against us or our affiliates, we reserve the right in our sole judgment to select our own legal counsel to represent our interests, at your cost.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
I am unable to provide information from the 2025 FDD about the specific implications of a finding of joint employer status between Alloy and its franchisees. The provided excerpts from the Franchise Disclosure Document do not address this scenario directly.
However, the FDD does include information regarding franchise claims and legal representation. Specifically, if a claim is made against Alloy or its affiliates, Alloy reserves the right to select its own legal counsel to represent its interests, potentially at the franchisee's cost. This could be relevant in a joint employer situation where a claim arises due to the franchisee's employment practices.
To fully understand the potential ramifications of a joint employer finding, a prospective Alloy franchisee should seek clarification from the franchisor. Inquiring directly about the franchisor's policies and procedures in such cases, as well as any available insurance coverage or indemnification provisions, is essential. Consulting with a legal professional experienced in franchise law and employment matters is also recommended to assess the risks and obligations involved.