Who is considered the sole employer of the employees of the Bee Organized franchised business?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is the sole employer of the employees of the Franchised Business. Franchisee has the sole right to select, hire and discharge Franchisee's employees. Franchisee is responsible for all decisions regarding hiring, firing, training, supervising, disciplining, scheduling and paying wages to, and withholding and paying taxes for Franchisee's employees. Franchisee, each Owner, each Spouse, and Franchisee's officers, directors, manager, agents, representatives, independent contractors and employees shall not be construed, considered, or represented as Franchisor's employees, representatives, or agents. 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 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 employer-employee 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 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the franchisee is considered the sole employer of the employees of the franchised business. This means that the franchisee has the sole right to select, hire, and discharge their employees.
As the sole employer, the Bee Organized franchisee is responsible for all decisions related to employment, including hiring, firing, training, supervising, disciplining, scheduling, and paying wages to employees. The franchisee is also responsible for withholding and paying taxes for their employees. The FDD emphasizes that there is no joint employer relationship between Bee Organized Enterprises, LLC (the franchisor) and the franchisee or the franchisee's employees.
This arrangement is typical in franchising, where franchisees operate as independent business owners. The franchisor's Operations Manual may include guidelines for employees, but these are intended to maintain brand standards and system uniformity, not to establish an employer-employee relationship. In case of any conflict between the Franchise Agreement and the Operations Manual regarding employment issues, the Franchise Agreement takes precedence.
Prospective Bee Organized franchisees should understand that they will bear the full responsibility for managing their employees and complying with all labor laws. This includes ensuring proper training, fair wages, and a safe working environment. Franchisees should consult with legal and HR professionals to ensure they are meeting all their obligations as an employer.