What is the Closet Storage Concepts franchisee's responsibility regarding training programs for employees?
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, franchisees are responsible for employment decisions and functions, including implementing a training program for their employees. This includes hiring, firing, discipline, supervision, setting terms of employment and compensation. The training program must align with the standards and procedures that Closet Storage Concepts specifies.
This means that while the franchisee has autonomy over their employees, they must ensure that the training provided meets Closet Storage Concepts' requirements. This is to ensure that the business operates in compliance with the franchisor's standards. The franchisee must conduct business in compliance with Closet Storage Concepts' requirements at all times.
Furthermore, the franchisee is responsible for ensuring that employees do not believe they are employed by the franchisor, Closet Storage Concepts. The franchisee is liable to Closet Storage Concepts for the actions of any individuals with respect to confidential information. The franchisee must obtain a written agreement from employees and any other person having access to the Operations Manual or to whom Franchisee wishes to disclose any Confidential Information that they shall maintain the confidentiality of the Confidential Information and they shall recognize Franchisor as a third-party beneficiary with the independent right to enforce the covenants either directly in Franchisor's own name as beneficiary or acting as agent.