Who is responsible for complying with employment laws related to the operation of the Buona Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall hire all employees of the Franchised Business, be exclusively responsible for complying with all employment laws and for all employment decisions and functions related to the operation of the Franchised Business, including hiring, firing, compensation, benefits, work hours, work rules, recordkeeping, supervision and discipline of employees.
Franchisee shall implement a training program for said employees in compliance with Franchisor's requirements.
Franchisee and Franchisor acknowledge that the employees of the Franchised Business are employees of Franchisee and not employees of Franchisor, that they should not be held out to third parties to be employees of Franchisor, and that Franchisee has the sole right to control employment and personnel policies and the day-to-day operations of the Franchised Business.
Franchisee shall notify and communicate clearly with its employees in all dealings, including without limitation, employment applications, written and electronic correspondence, paychecks, employee handbooks, employment policies and procedures, and other written materials that Franchisee (and only Franchisee) is their employer and that Franchisor is not their employer.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee is exclusively responsible for complying with all employment laws related to the operation of their franchised business. This includes all employment decisions and functions such as hiring, firing, compensation, benefits, work hours, work rules, recordkeeping, supervision, and discipline of employees.
This means that as a Buona franchisee, you will have the sole responsibility for ensuring that your business adheres to all applicable federal, state, and local employment laws. This encompasses a wide range of legal requirements, from wage and hour laws to anti-discrimination regulations. You will also be responsible for implementing a training program for your employees that complies with Buona's requirements.
Buona emphasizes that employees of the franchised business are employees of the franchisee, not of Buona itself. Franchisees must clearly communicate this to their employees in all dealings, including employment applications, correspondence, paychecks, employee handbooks, and other written materials. This distinction is important to maintain a clear separation of legal responsibilities and avoid any potential co-employment issues.
As a prospective franchisee, it is crucial to understand the full scope of these responsibilities and to seek legal counsel to ensure compliance with all applicable employment laws. Failing to comply with these laws can result in significant penalties and legal liabilities.