Does the Bang Cookies franchise agreement consider the Franchisor and Franchisee to be joint employers?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee will be, is, and shall remain the sole and exclusive employer of all employees of the Franchised Business. Franchisor is not a joint employer and nothing contained in this Agreement shall be interpreted as creating a joint employer relationship. Franchisee possesses the sole right to select, hire and discharge Franchisee's employees. Franchisee is responsible for all decisions regarding hiring, firing, training, supervising, disciplining, scheduling, paying wages to, and withholding and paying taxes for all employees. Franchisee, each Owner, each Spouse, and Franchisee's officers, directors, manager, agents, representatives, independent contractors and employees are not employees, representatives, or agents of Franchisor and shall never represent themselves as employees, representatives, or agents of Franchisor.
There is no joint employer relationship between Franchisor and Franchisee or Franchisee's employees. Franchisee's compliance with all federal, state and local labor laws rules and regulations shall be exclusively determined and managed by Franchisee. To the extent that the operations manual and/or any other communications from Franchisor includes information, specifications, procedures, criteria and/or requirements as to employees of the Franchised Business, such requirements shall be interpreted, exclusively, for the purpose of maintaining brand standards associated with the System, to protect the good will associated with the System, and to ensure System uniformity requirements and standards concerning the Approved Services and Products, and under no circumstance shall same relate to the employeremployee relationship. As to the foregoing issue of joint employer and the non-existence thereof, in the event of any inconsistency or conflict between this Agreement and the operations manual, the terms of this Agreement shall take precedence and govern.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the franchise agreement explicitly states that the franchisor and franchisee are not considered joint employers. This is reinforced throughout the agreement, emphasizing that the franchisee is the sole and exclusive employer of all employees within the franchised business. The agreement clarifies that the franchisee has the sole right to hire, fire, train, supervise, discipline, schedule, and pay wages to their employees, as well as handle all tax withholdings.
This distinction is important because it means the franchisee is responsible for compliance with all federal, state, and local labor laws. The franchisor's operational manual and any other communications are intended to maintain brand standards, protect goodwill, and ensure system uniformity, and should not be interpreted as relating to the employer-employee relationship. In case of any conflict between the franchise agreement and the operations manual, the terms of the franchise agreement will take precedence.
For a prospective Bang Cookies franchisee, this means they have complete control over their employees but also bear full responsibility for all employment-related matters. This includes ensuring compliance with labor laws, managing employee relations, and handling all associated costs. The franchisee cannot claim the franchisor as a joint employer to share these responsibilities or liabilities.