Is a Chocolate Fish Coffee franchisee allowed to use the Marks on employment documents?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees are not allowed to use the brand's Marks on employment-related documents. Specifically, the franchisee must use their legal name on all documents with employees and independent contractors. These documents include, but are not limited to, employment applications, time cards, pay checks, and employment and independent contractor agreements.

This restriction ensures that there is no confusion about the employer's identity. Chocolate Fish Coffee wants to make it clear that the franchisee is the sole employer and is responsible for all employment-related matters. This is further reinforced by the requirement that the franchisee and each of its employees sign an acknowledgment form stating that the franchisee alone (and not Chocolate Fish Coffee) is the employee's sole employer.

This policy is in place to protect Chocolate Fish Coffee from potential liabilities related to employment practices at the franchise level. By preventing the use of the Marks on employment documents, Chocolate Fish Coffee aims to maintain a clear distinction between the franchisor and the franchisee as separate legal entities. This is a fairly standard practice in franchising, as franchisors generally want to avoid being considered a joint employer, which could expose them to legal and financial risks related to the franchisee's employees.