Is Bambu considered the employer of the franchisee's employees?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be exclusively responsible for recruiting, appointing, hiring, firing, and supervising its employees, independent agents, and Bambū Certified Team Leaders.
Those employees and agents will be employees or agents of Franchisee.
They are not employees or agents of Bambu and Bambu is not the joint employer of those persons.
Franchisee will have sole authority and control over the day-to-day operations of the Bambū shoppe and its employees and agents.
Bambu will have no right or obligation to direct Franchisee's employees and agents or to operate the Bambū shoppe.
It is Franchisee's responsibility to determine compensation of employees and agents, terms of employment, safety regulations, work assignments, work schedules, and working conditions.
Any information regarding any of those issues provided to Franchisee by Bambu are mere suggestions and Franchisee shall have the sole discretion to utilize such information or not.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all employment-related matters within their Bambu location. Bambu is explicitly not considered the employer nor the joint employer of the franchisee's employees or agents. The franchisee has complete control over hiring, firing, supervising, and determining the terms of employment, compensation, and working conditions for their staff. Bambu's role is limited to providing suggestions, and the franchisee has the discretion to either use or disregard this information.
This delineation of employer responsibilities is further reinforced by the requirement that each party files their own tax, regulatory, and payroll reports. The franchisee is also obligated to conspicuously post a notice in the store identifying the location as being independently owned and operated. This separation aims to ensure that the franchisee is recognized as the sole employer, responsible for compliance with labor and employment laws.
This arrangement protects Bambu from potential liabilities related to the franchisee's employees, such as claims of unfair labor practices or wage disputes. However, the franchisee must indemnify Bambu against any claims arising from the acts or omissions of the franchisee's employees and agents. This indemnification extends to claims alleging violations of labor and employment laws, highlighting the importance of the franchisee's adherence to legal and ethical employment practices.
For a prospective Bambu franchisee, this means they will have significant autonomy in managing their workforce but also bear the full responsibility for all employment-related obligations. It is crucial for franchisees to understand and comply with all applicable labor laws and regulations to avoid potential legal issues and financial liabilities. Franchisees should consult with legal and HR professionals to ensure they have proper policies and procedures in place for managing their employees.