Regarding employees hired by the Master Franchisee, are they considered employees or agents of the Bhc Franchisor?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Master Franchisee further agrees it will not identify itself as (i) Franchisor, (ii) a subsidiary, parent, division, shareholder, partner, joint venture, agent or employee of Franchisor or the Owner of the Marks or (iii) any of Franchisor's other Master Franchisees.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the employees and agents of the Master Franchisee are not considered employees or agents of the Bhc Franchisor. The Master Franchisee operates as an independent entity.
The FDD states that the Master Franchisee must identify the franchised business as "INDEPENDENTLY OWNED AND OPERATED" in its dealings with the public. Furthermore, the Master Franchisee agrees not to identify itself as an agent or employee of Bhc or the Owner of the Marks. This reinforces the independent nature of the Master Franchisee's business.
This distinction is important because the Master Franchisee is responsible for all employment-related obligations, including compliance with wage and hour laws, tax payments, and maintaining necessary permits and licenses. Bhc is not liable for the Master Franchisee's business debts or obligations to third parties. This independent contractor relationship is typical in franchising, where franchisees operate their businesses separately from the franchisor.