As the owner of a Coffee News franchise, am I responsible for my employees' compliance with the Franchise Agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
As the owner of the franchise(s), you are responsible for the compliance of all employees with the terms and conditions of the Franchise Agreement including your manager, on- premises supervisor or minority stockholder, if a company. If the franchisee is a company, there is no minimum equity interest required that the on-premises supervisor must have in the company. We do not impose any restriction that you must place on your managerial staff. You may, however, require a non-compete of all employees and a non-disclosure of trade secrets.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 24–25)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, as a Coffee News franchisee, you are responsible for ensuring that your employees comply with the terms and conditions outlined in the Franchise Agreement. This responsibility extends to all employees, including managers, on-premises supervisors, and minority stockholders if the franchisee is a company.
This means that you must actively monitor your employees' actions and ensure they adhere to all aspects of the agreement. While Coffee News does not impose specific restrictions on your managerial staff, you have the option to implement non-compete agreements and non-disclosure agreements to protect trade secrets.
Specifically, Coffee News emphasizes the franchisee's responsibility for their employees' compliance with the Coffee News Social Media Policy. Franchisees must monitor their employees, representatives, and agents to ensure they meet the requirements set forth in the policy. This includes compliance with laws, regulations, and third-party terms and conditions related to social media use. Failure to ensure employee compliance could result in breaches of the Franchise Agreement, potentially leading to termination or other penalties.