Who is considered my employer under this agreement with Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be solely responsible for all employment decisions and functions, including hiring, firing, discipline, supervision, setting terms of employment and compensation and implementing a training program for employees of the Franchised Business in accordance with training standards and procedures Franchisor specifies in order for Franchisee to conduct the business of the Franchised Business at all times in compliance with Franchisor's requirements.
Franchisee shall never represent or imply to prospective employees and employees that they shall be or are employed by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, if you are hired to work at a Closet Storage Concepts franchise, the franchisee is considered your employer, not Closet Storage Concepts itself. The franchisee is responsible for all employment-related decisions, including hiring, firing, setting terms of employment and compensation, and implementing training programs. The franchisee must also ensure that the business operates in compliance with Closet Storage Concepts' standards.
This means that as an employee, your direct relationship and responsibilities lie with the franchisee who owns and operates the specific Closet Storage Concepts location where you work. Any issues related to your employment, such as wages, working conditions, or termination, would be handled by the franchisee, not the corporate franchisor. Closet Storage Concepts sets the standards and provides the system, but the franchisee manages the day-to-day operations and personnel.
It is important for prospective employees to understand this distinction, as it clarifies who is responsible for their employment terms and conditions. The FDD emphasizes that franchisees should never represent or imply to employees that they are employed by Closet Storage Concepts, reinforcing the separation between the franchisor and the franchisee's employees. This arrangement is typical in franchising, where the franchisor provides the brand, system, and support, while the franchisee manages the local business and its staff.