factual

Is the Caring Transitions franchisor responsible for providing training to the franchisee's employees?

Caring_Transitions Franchise · 2025 FDD

Answer from 2025 FDD Document

er activities that will conflict with its obligations under this agreement.

7.24 Employees.

  • (a) Generally. Franchisee shall hire, train, and supervise the appropriate personnel necessary to conduct the Franchised Business. All such personnel are under Franchisee's responsibility and direction and are employees of Franchisee and not of Franchisor. Franchisee may enter into a leased or shared employee relationship with a third party to provide employees for the Franchised Business, so long as Franchisee retains ultimate control over the hiring, compensation, supervision, training, and other terms of their employment. Franchisee shall maintain employee information in its Communication and Information System, maintain all employee records required by all applicable laws, and make such information and records available for inspection by Franchisor upon request.

  • (b) Control. All employees engaged by Franchisee or other individuals who provide services to the Franchised Business or to its clients will be regarded as employees of Franchisee only and there will be no relationship between Franchisor and Franchisee's employees. Franchisee shall advise each of its employees in writing, before the commencement of their employment, that they will be employed by Franchisee only and not Franchisor. The parties acknowledge and agree that Franchisor has no authority to and shall not exercise any control over the essential terms and conditions of employment of any personnel working for or hired by Franchisee. With respect to such personnel, and without limiting the generality of the preceding sentences, only Franchisee has the power, and hereby accepts the responsibility, to hire, pay, promote, discipline, fire, train, establish employment policies, provide an employee handbook, supervise, and control their schedule and work conditions, determine pay rates and methods of payment, and maintain employment records. With respect to Franchisee's employees, Franchisor:

  • i. shall not participate in hiring, firing, promotion, demotion, disciplinary, or scheduling decisions of Franchisee;

  • ii. shall not supervise the work to be performed;

  • iii. is not responsible for the determination or payment of wages;

  • iv. shall not provide employment benefits (including workers' compensation, group health insurance, or retirement plans);

  • v. shall not provide training;

  • vi. shall not supply tools or equipment; and

  • vii. shall not determine the applicability of minimum wage or overtime laws or exemptions;

and has no authority to do any of the foregoing.

  • (c) Employee Payments. Franchisee shall pay all salaries for its personnel. Franchisee is responsible for all costs and overhead associated with the conduct of the Franchise except as otherwise specifically provided in this agreement. Franchisee is responsible for the payment of all wages, commissions, bonuses, fringe benefits, insurance premiums, payroll taxes and other items required by applicable law, if any, to all personnel working for or hired by Franchisee, whether classified as employees or independent contractors. Without prejudice to the foregoing, Franchisee shall make all statutory deductions and contributions and is solely responsible for complying—and shall comply—with all applicable laws relating to the employment of its employees, including all wage and hour laws, the classification of workers as employees or independent contractors, and the classification of employees as exempt or non-exempt under applicable minimum wage and overtime laws. Employment of Franchisee's employees will be at Franchisee's own risk and expense and its employees will not have any claims against Franchisor for wages, commissions, bonuses, fringe benefits, insurance premiums, social welfare contributions, or any other form of compensation (including severance compensation).
  • (d) Training. Franchisee shall establish a training program for all of Franchisee's employees. The training program must meet all applicable laws, professional license requirements, and Franchisor's standards and training guidelines as set out in the Operations Manual and other written materials provided by Franchisor upon request. Upon request, Franchisor shall advise and assist Franchisee in connection with the development of Franchisee's employee training program, but Franchisee retains all responsibility for and control over all training for its employees.

7.25 Data Protection.

  • (a) In this section , "process" and/or "processing" in relation to any data means collecting, obtaining, recording or holding the data or carrying out any operation or set of operations on the data including:
      1. organization, adaptation or alteration;
    • (2) retrieval, consultation or use;
    • (3) disclosure by transmission, dissemination or otherwise making available;

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)

What This Means (2025 FDD)

According to Caring Transitions' 2025 Franchise Disclosure Document, the franchisor is not responsible for providing training to the franchisee's employees. The FDD states that the franchisee is responsible for hiring, training, and supervising their personnel. Caring Transitions franchisees must establish a training program for their employees that adheres to all applicable laws, professional license requirements, and the franchisor's standards and training guidelines as outlined in the Operations Manual.

While Caring Transitions will advise and assist franchisees in developing their employee training programs upon request, the franchisee retains full responsibility and control over all aspects of employee training. The FDD explicitly states that the franchisor "shall not provide training" to franchisee employees. This means franchisees must allocate resources for creating and implementing their own training programs to ensure employees meet the required standards.

This arrangement is typical in many franchise systems, where the franchisee is considered the employer and is therefore responsible for their employees' training. However, franchisees benefit from the franchisor's guidance and resources in setting up effective training programs. Franchisees should carefully review the Operations Manual and any other training materials provided by Caring Transitions to ensure their employee training programs align with the franchisor's standards.

Prospective franchisees should inquire about the specific training guidelines and support offered by Caring Transitions to better understand the scope of their responsibilities and the resources available to them. Understanding the franchisor's expectations and available support will help franchisees effectively train their employees and maintain the quality standards of the Caring Transitions brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.