What must a Belocal franchisee communicate to all employees regarding their employer?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, Franchisee must communicate to all employees that Franchisee, not Franchisor, is their employer; and Franchisee must ensure that no payroll checks or other employment-related documents (such as job applications and W-2s) contain or reference the Marks or Franchisor's name.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee must communicate to all employees that the franchisee, and not Belocal, is their employer. This means the franchisee is responsible for all employment-related matters.
This requirement ensures clarity and avoids any confusion about who is responsible for the employees. The franchisee must also ensure that no payroll checks or other employment-related documents, such as job applications and W-2s, contain or reference Belocal's name or trademarks. This reinforces the separation between the franchisee's business and the Belocal franchise system.
This stipulation protects Belocal from potential liabilities related to the franchisee's employees. It also emphasizes the franchisee's role as an independent contractor, responsible for managing their own staff and operations. Prospective franchisees should understand that they will bear the full responsibility for all employer-related obligations.