Does the Employee/Independent Contractor Confidentiality and Non-Competition Agreement for Annex Brands require employees to acknowledge they are not employed by 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 includes an acknowledgement that the employee or independent contractor is employed or engaged by the franchisee, not by Annex Brands, Inc. This acknowledgement is part of the agreement that the franchisee and their employee or independent contractor must agree to.
This provision clarifies that while the employee or independent contractor will be selling products and services identified by Annex Brands' brand name and/or logo, and may receive communications containing Annex Brands' brand name, their employer is the franchisee. This distinction is important for legal and liability reasons, as the franchisee is responsible for managing and employing their staff, not Annex Brands itself.
Prospective Annex Brands franchisees should understand that they, as the franchisee, are solely responsible for all employment-related matters within their franchise. This includes hiring, training, and managing employees, as well as ensuring compliance with all applicable labor laws. The agreement aims to prevent any confusion about the employment relationship, reinforcing that Annex Brands is not the employer, even though the business operates under the Annex Brands brand.