factual

Does the Casiola franchise agreement state that the Franchisor and Franchisee are considered joint employers?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

bution to customers, potential customers and/or customer referral sources outside of Franchisee's Operating Market, unless: (a) such Media Distribution is a joint distribution with other Casiola Businesses and is authorized by Franchisor in writing; and (b) Franchisor, in Franchisor's Reasonable Business Judgment, otherwise agrees to same in writing.

ARTICLE 10 RELATIONSHIP OF THE PARTIES AND INDEMNIFICATION

10.A. INDEPENDENT CONTRACTORS

This Agreement does not create a fiduciary relationship between Franchisor and Franchise, Franchisor and Franchisee are independent contractors, and nothing in this Agreement is intended to make either party a general or special agent, legal representative, subsidiary, joint venturer, partner, employee or servant of the other for any purpose. The parties' relationship is strictly a Franchisor and Franchisee relationship. Franchisee is the sole employer of the employees of the Franchised Business. Franchisee has the sole right to select, hire and discharge Franchisee's employees. Franchisee is responsible for all decisions regarding hiring, firing, training, supervising, disciplining, scheduling and paying wages to, and withholding and paying taxes for Franchisee's employees. Franchisee, each Owner, and Franchisee's officers, directors, manager, agents, representatives, independent contractors and employees shall not be construed, considered, or represented as Franchisor's employees, representatives, or agents. There is no joint employer relationship between Franchisor and Franchisee or Franchisee's employees. Franchisee's compliance with all federal, state and local labor laws rules and regulations shall be exclusively determined and managed by Franchisee. To the extent that the Operations Manual includes information, specifications, procedures, criteria and/or requirements as to employees of the Franchised Business, such requirements shall be interpreted exclusively for the purpose of maintaining brand standards associated with the System, to protect the good will associated with the System, and to ensure System uniformity requirements and standards concerning the Approved Services and Products, and under no circumstance shall same relate to the employer-employee relationship. As to the foregoing issue of "joint employer" and the non-existence thereof, in the event of any inconsistency or conflict between this Agreement and the Operations Manual, the terms of this Agreement shall take precedence and govern.

Franchisee must conspicuously identify itself at the premises of the Franchised Business and in all dealings with customers, lessors, contractors, suppliers, public officials and others as the owner of a Casiola Business under a franchise from Franchisor, and Franchisee must place other notices of independent ownership on signs, forms, stationery, advertising and other materials as Franchisor requires.

Franchisee must not employ any Licensed Mark in signing any contract, lease, mortgage, check, purchase agreement, negotiable instrument, or other legal obligation. Franchisee must not employ any Licensed Mark in a manner that is likely to result in liability of Franchisor for any indebtedness, action, inaction, or

obligation of Franchisee.

Source: Item 23 — RECEIPTS (FDD pages 47–209)

What This Means (2024 FDD)

According to the 2024 Casiola Franchise Disclosure Document, the franchise agreement explicitly states that Casiola and its franchisees are independent contractors and that there is no joint employer relationship. The agreement specifies that the franchisee is solely responsible for all employment-related decisions, including hiring, firing, training, and wage payments, as well as compliance with labor laws. This means that the franchisee, not Casiola, is the sole employer of the employees of the Franchised Business.

This delineation of responsibilities protects Casiola from potential liabilities related to the franchisee's employees. It also gives the franchisee autonomy in managing their workforce. The agreement also clarifies that any guidelines in the Operations Manual regarding employees are solely for maintaining brand standards and system uniformity, and do not establish an employer-employee relationship between Casiola and the franchisee's staff.

Furthermore, the franchise agreement emphasizes that in any conflict between the agreement and the Operations Manual regarding the issue of 'joint employer,' the terms of the franchise agreement will take precedence. This reinforces the independent contractor relationship and ensures that the franchisee is recognized as the sole employer. Casiola also includes a clause stating that none of Franchisor's employees, officers and/or authorized agents shall be personally liable to Franchisee for any reason. In addition, Franchisor and Franchisee are not joint employers.

Disclaimer: This information is extracted from the 2024 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.