Who is responsible for establishing wages, hours, benefits, employment policies, and other terms and conditions of employment for employees and independent contractors at a Bft franchise?
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 is solely responsible for all employment-related decisions at their studio. Specifically, the franchisee, not Bft, is considered the employer of all employees and the principal of all independent contractors.
This means the Bft franchisee has the exclusive right to hire, discipline, and discharge employees and independent contractors. More importantly, the franchisee is responsible for establishing wages, hours, benefits, employment policies, and other terms and conditions of employment. Bft has no responsibility for the terms and conditions of the franchisee's relationship with their employees and/or independent contractors.
The FDD emphasizes that the franchisee must obtain their own independent legal advice regarding employment and comply with all applicable laws. This includes wage-hour laws, civil rights, immigration, employee safety, and payroll-related laws. The franchisee is also responsible for making all necessary filings and paying all required taxes and fees to the IRS and other governmental agencies.
Bft franchisees must also ensure that they do not engage in any discriminatory employment practices. The agreement explicitly states that nothing within it should be construed as creating any type of employer or joint employer relationship between Bft and the franchisee or the franchisee's personnel.