Does the Employee/Independent Contractor Confidentiality and Non-Competition Agreement for Annex Brands consider an employee or independent contractor of the franchisee to also be an employee or independent contractor of the Franchisor?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, we desire to employ or engage you, and you desire to be employed or engaged by us, in connection with the operation of our franchised business.
NOW, THEREFORE, in consideration of the recitals above and the terms below, you and we acknowledge and agree:
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- Acknowledgement That You Are Our Employee or Independent Contractor, and That You Are Not an Employee or Independent Contractor of Franchisor. You acknowledge that you are our employee or independent contractor, and that you are not an employee or independent contractor of Franchisor, even though you will be selling products and services identified by Franchisor's brand name and/or logo, may be receiving payroll checks or other communications that contain Franchisor's brand name and/or logo, may have applied for employment or engagement by us through Franchisor's website, or may communicate with or receive nonmandatory feedback, coaching or recommendations from representatives of Franchisor in emails or other electronic or written communications, or during telephone calls, meetings or inspections.
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the Employee/Independent Contractor Confidentiality and Non-Competition Agreement explicitly states that an employee or independent contractor of the franchisee is NOT considered an employee or independent contractor of the Franchisor. This is outlined in Section 1 of the agreement, which emphasizes that the individual is solely the franchisee's employee or contractor. This acknowledgement is in place even if the employee or contractor is selling products/services under Annex Brands's brand, receives communications with the brand's logo, applies through the Franchisor's website, or receives non-mandatory feedback from Annex Brands representatives.
This distinction is important because it clarifies the legal relationship and responsibilities. The franchisee, not Annex Brands, is responsible for managing and supervising their employees or contractors. This includes handling payroll, providing benefits, and ensuring compliance with labor laws. The agreement aims to prevent any confusion about who the worker is employed or engaged by, despite the use of Annex Brands's branding and potential interactions with its representatives.
For a prospective Annex Brands franchisee, this means they have direct control and responsibility over their staff. They must understand their obligations as an employer or contracting party. While Annex Brands may offer guidance or support, the franchisee is ultimately the one who makes employment-related decisions and bears the associated liabilities. This arrangement is typical in franchising, where the franchisee operates as an independent business owner.