Must a Bft franchisee comply with all applicable laws related to employment?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee, not Franchisor, shall be considered the employer of all employees and the principal of all independent contractors of the Studio. It is the sole responsibility of Franchisee to hire, discipline, discharge and establish wages, hours, benefits, employment policies and other terms and conditions of employment for its employees and independent contractors. Franchisee is solely responsible for obtaining its own independent legal advice regarding the employment of employees and retention of independent contractors, and for complying with any and all Applicable Laws pertaining thereto. Franchisor shall have no responsibility for the terms and conditions of Franchisee's relationship with Franchisee's employees and/or independent contractors. Franchisee shall engage in no discriminatory employment practices and shall in every way comply with all Applicable Laws, including all wage-hour, civil rights, immigration, employee safety and related employment and payroll related laws. Franchisee shall make all necessary filings with, and pay all taxes and fees due to, the Internal Revenue Service and all other federal, state and local governmental agencies or entities to which filings and payments are required. Franchisee acknowledges that nothing in this Section or Agreement shall, or may be construed to, create any type of employer or joint employer relationship between (a) Franchisee or any of Franchisee's personnel, and (b) Franchisor in any matter.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft franchisees are responsible for complying with all applicable employment laws. As the employer of all studio employees and the principal of all independent contractors, the franchisee is responsible for hiring, disciplining, discharging, and establishing wages, hours, benefits, employment policies, and other terms and conditions of employment. Bft franchisees are also responsible for obtaining their own legal advice regarding employment and for making all necessary filings and paying all taxes and fees to the relevant governmental agencies.
Bft franchisees must ensure that they engage in no discriminatory employment practices and comply with all wage-hour, civil rights, immigration, employee safety, and related employment and payroll-related laws. Bft emphasizes that nothing in the franchise agreement should be construed to create any employer or joint employer relationship between Bft and the franchisee or the franchisee's personnel.
This requirement is standard in franchising, as the franchisee typically operates as an independent business owner. The franchisee's responsibility for employment matters means they must stay informed about and adhere to all relevant federal, state, and local labor laws. This includes, but is not limited to, minimum wage laws, overtime pay regulations, anti-discrimination laws, and workplace safety standards.