What must a Card My Yard franchisee inform all workers regarding their employer?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
You must clearly inform all workers, before hiring and periodically thereafter, that Franchisee, and not Franchisor, is their employer and that Franchisor does not assume and will not accept any employer, co-employer, or joint employer obligations. You agree to indemnify us for any liability, cost, expense, loss or damage, including attorney's fees and costs, arising from any claim or allegation that Franchisor or any affiliate is the employer, co-employer, or joint employer of Franchisee, its owners, or any workers in the Card My Yard business.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees must inform all workers, before hiring and periodically thereafter, that the franchisee, and not Card My Yard, is their employer. This means that Card My Yard does not assume any employer obligations.
This requirement is important to protect Card My Yard from potential liabilities related to employment matters within the franchisee's business. By ensuring that workers are aware that they are employed by the franchisee, Card My Yard aims to avoid any claims or allegations that it is a co-employer or joint employer.
To further protect themselves, Card My Yard requires franchisees to indemnify them against any costs, expenses, losses, or damages, including attorney's fees, arising from claims that Card My Yard is the employer of the franchisee's workers. This underscores the importance of franchisees adhering to this requirement and maintaining clear communication with their employees regarding their employment status.
This type of clause is common in franchise agreements to clearly delineate the responsibilities and liabilities of the franchisor and franchisee, particularly in areas related to employment and operations. Franchisees should ensure they understand their obligations as employers and comply with all applicable labor laws.