In the Belocal franchise agreement, are the franchisee and franchisor considered independent contractors?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Relationship of the Parties.
Franchisee and Franchisor are independent contractors.
Neither Franchisee nor Franchisor are agents, legal representatives, affiliates, joint venturers, partners, employees, or servants of the other for any purpose.
Neither Franchisee nor Franchisor shall be obligated by, or have any liability under, any agreements or representations made by the other, nor shall Franchisor be liable for any damages to any person or property directly or indirectly arising out of Franchisee's operation of the Franchised Business, whether or not caused by Franchisor's negligence or willful action or failure to act.
Franchisor shall have no liability for any sales, use, excise, gross receipts, property, income, or other taxes that Franchisee might incur in connection with Franchisee's operation of the Franchised Business.
Franchisee shall retain control over Franchisee's own work schedule and determine the hours Franchisee works on any given day.
Franchisee shall use his or her own equipment and materials.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement specifies that the franchisee and franchisor are independent contractors. This means that neither party is considered an agent, legal representative, affiliate, joint venturer, partner, employee, or servant of the other for any purpose. This distinction has several implications for the Belocal franchisee.
As independent contractors, neither Belocal nor the franchisee is bound by the other's agreements or representations, and Belocal is not liable for damages arising from the franchisee's business operations, regardless of negligence or willful action. The franchisee is responsible for all taxes incurred in connection with their Belocal business. The franchisee also retains control over their work schedule and use of their own equipment and materials.
This independent contractor relationship extends to the franchisee's staff, as all employees and independent contractors hired by the franchisee are solely the franchisee's responsibility and are not considered employees or independent contractors of Belocal. Belocal has no authority over the franchisee's staff regarding hiring, firing, or working conditions. The franchisee must also ensure that employees are aware that the franchisee, not Belocal, is their employer, and that employment-related documents do not reference Belocal's name or trademarks. The franchisee must present themselves to the public as an independent contractor operating the Belocal franchise under the rights granted by Belocal.