Does the Canine Dimensions franchise agreement imply that the franchisor is the employer of the franchisee's employees?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
ted on any vehicles owned or operated by Franchisee in connection with the Franchised Business.
18.3 Indemnification
Franchisee and each of the owners of any equity interest in Franchisee (the "Owners"), jointly and severally, will indemnify and defend Canine Dimensions Franchising, LLC (the "Indemnified Parties") against all Losses and Expenses arising from the operation or condition of any part of the Franchised Business or its site, the conduct of business, and any acts or omissions of Franchisee or its employees, agents, or contractors, including the collection or use of Customer Information; the infringement or alleged infringement by Franchisee or any Owners of any patent, trademark, copyright, or other proprietary right owned by third parties, unless arising from authorized use of the Marks in compliance with this Agreement; the violation or breach by Franchisee or any Owners of any applicable laws; Franchisee's failure to obtain and maintain required insurance coverage; libel, slander, or defamation of the Indemnified Parties, the System, or any other Franchisee by Franchisee or any Owners; the violation or breach by Franchisee or its Affiliates or Owners of any warranty, representation, agreement, or obligation in this Agreement or other agreements with the Indemnified Parties; acts, errors, or omissions of Franchisee, its Affiliates, Owners, and their respective owners, officers, employees, agents, and representatives in connection with the Franchised Business; any encumbrances, liens, assessments, levies, charges, demands for payment, taxes, or other liabilities imposed on Franchisor due to payments under this Agreement; and any claim that Franchisor and Franchisee are joint employers of Franchisee's employees or personnel.
- 18.3.1 Franchisee and Owners must give Franchisor immediate notice of any Action subject to indemnification. Franchisor may elect to control the defense and/or settlement of any such Action, without diminishing Franchisee's obligation to indemnify the Indemnified Parties.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the franchise agreement includes a clause where the franchisee agrees to indemnify Canine Dimensions against any claim that they are joint employers of the franchisee's employees. This means that the franchisee is responsible for defending Canine Dimensions against any legal claims asserting that Canine Dimensions is an employer of the franchisee's employees.
This clause protects Canine Dimensions from potential liabilities related to the franchisee's employees, such as wage and hour disputes, discrimination claims, or other employment-related issues. By including this indemnification clause, Canine Dimensions aims to maintain its distance from the direct employment relationship with the franchisee's staff.
Furthermore, the franchise agreement requires the franchisee to acknowledge their independent ownership and operation of the Canine Dimensions business. The franchisee must include a disclaimer on documents used with customers and associates stating that "EACH CANINE DIMENSIONS BUSINESS IS INDEPENDENTLY OWNED AND OPERATED." This statement reinforces the separation between the franchisor and the franchisee's business, clarifying that the franchisee is responsible for their own business operations and employment practices.
In summary, while the franchise agreement does not explicitly state that Canine Dimensions is NOT the employer, the indemnification clause and the required disclaimer strongly suggest that the franchisee is solely responsible for their employees, and the franchisee must protect Canine Dimensions from any claims to the contrary.