Is the Bang Cookies franchise agreement considered an employment agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, this Agreement is not an employment agreement and is only a confidentiality agreement in connection with information, materials and access that may be provided to you in connection with the Bang Cookies Business.
NOW THEREFORE, you acknowledge and agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to the 2024 Bang Cookies Franchise Disclosure Document, the franchise agreement itself is not an employment agreement. This is reinforced by the inclusion of a sample confidentiality agreement that Bang Cookies franchisees may use with their own employees or contractors. This sample agreement explicitly states that it "is not an employment agreement and is only a confidentiality agreement in connection with information, materials and access that may be provided to you in connection with the Bang Cookies Business."
This distinction is important because it clarifies the relationship between Bang Cookies as the franchisor and the franchisee. Franchisees are independent business owners, not employees of Bang Cookies. They are responsible for managing their own operations, including hiring and managing their own employees. The confidentiality agreement is designed to protect Bang Cookies' confidential information, regardless of whether the individual accessing the information is an employee or a contractor of the franchisee.
Furthermore, the FDD includes a clause stating that "Franchisor and Franchisee are not joint employers." This means that Bang Cookies is not considered a co-employer of the franchisee's employees. This is a common arrangement in franchising, as it helps to maintain the separation between the franchisor's brand standards and the franchisee's independent business operations. Prospective franchisees should understand that they are responsible for all employment-related matters within their Bang Cookies franchise.
It is important to note that the sample confidentiality agreement should be reviewed and approved by an independent local attorney hired by the franchisee before being used with an employee or contractor. This ensures that the agreement complies with all applicable laws and regulations in the franchisee's jurisdiction. This also protects the franchisee from potential legal issues related to employment or contractor relationships.