Is a Bft franchisee or the franchisor considered the employer of the studio's employees?
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, the franchisee, not Bft, is considered the employer of all employees and the principal of all independent contractors of the studio. This means the franchisee is responsible for all aspects of employment, including hiring, disciplining, and discharging employees. They also set wages, hours, benefits, employment policies, and other terms and conditions of employment.
This arrangement places significant responsibility on the Bft franchisee. They must ensure they comply with all applicable laws related to employment, including wage-hour laws, civil rights laws, immigration laws, and employee safety regulations. The franchisee is also responsible for making all necessary filings and paying all taxes and fees to the Internal Revenue Service and other governmental agencies.
Bft explicitly states it has no responsibility for the terms and conditions of the franchisee's relationship with their employees or independent contractors. The document also clarifies that nothing in the agreement should be construed to create any type of employer or joint employer relationship between Bft and the franchisee or the franchisee's personnel. This reinforces the franchisee's role as the sole employer and ensures Bft is not liable for employment-related issues.
Prospective Bft franchisees should seek independent legal advice regarding employment law to ensure they fully understand their obligations and responsibilities as an employer. This includes understanding how to properly classify workers (employee vs. independent contractor), complying with minimum wage and overtime laws, and avoiding discriminatory employment practices.