What is the Chocolate Fish Coffee franchisee's responsibility regarding the terms and conditions of employment of its personnel?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) Sole Responsibility. Franchisee is solely responsible for the terms and conditions of employment of all of its personnel, including recruiting, hiring, training, scheduling, supervising, compensation, and termination. Franchisee is solely responsible for all actions of its personnel. Franchisee and Chocolate Fish Franchising are not joint employers, and no employee of Franchisee will be an agent or employee of Chocolate Fish Franchising. Within seven days of Chocolate Fish Franchising's request, Franchisee and each of its employees will sign an acknowledgment form stating that Franchisee alone (and not Chocolate Fish Franchising) is the employee's sole employer. Franchisee will use its legal name on all documents with its employees and independent contractors, including, but not limited to, employment applications, time cards, pay checks, and employment and independent contractor agreements, and Franchisee will not use the Marks on any of these documents.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the franchisee has sole responsibility for the terms and conditions of employment for all personnel. This includes all aspects of employment, such as recruiting, hiring, training, scheduling, supervising, compensation, and termination. The franchisee is also solely responsible for all actions of its personnel.
Chocolate Fish Coffee and the franchisee are not considered joint employers, and no employee of the franchisee will be considered an agent or employee of Chocolate Fish Coffee. The franchisee must ensure that both 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 is a common provision in franchising to protect the franchisor from vicarious liability and to clarify the employment relationship.
The franchisee is required to use its legal name on all documents related to employees and independent contractors, including employment applications, time cards, paychecks, and employment and independent contractor agreements. The franchisee is prohibited from using Chocolate Fish Coffee's trademarks or brand name on any of these documents. This reinforces the separation between the franchisor and franchisee as employers and ensures compliance with branding guidelines.
Chocolate Fish Coffee may set minimum qualifications for categories of employees employed by the franchisee. The franchisee must also ensure that the business is under the on-site supervision of the Principal Executive or a general manager who has completed Chocolate Fish Coffee's training program. The franchisee must also ensure that its personnel render competent and courteous service to all customers and members of the public and comply with any dress attire, uniform, personal appearance, and hygiene standards set forth in the manual.