As the owner of a Coffee News franchise, what are you responsible for regarding your employees?
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.
We place no other limitations or restrictions on your staff other than those contained in the Item 17. We do not require a personal guaranty of the performance.
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 Coffee News's 2025 Franchise Disclosure Document, as a franchisee, you are responsible for your employees' compliance with the terms and conditions of the Franchise Agreement. This includes any manager, on-premises supervisor, or minority stockholder. Coffee News does not require a specific minimum equity interest for an on-premises supervisor if the franchisee is a company.
Coffee News does not place specific restrictions on your managerial staff beyond what is outlined in Item 17 of the FDD. However, you, as the franchisee, have the option to implement non-compete agreements and non-disclosure agreements to protect trade secrets with your employees.
Furthermore, franchisees must monitor their employees, representatives, and agents to ensure they comply with all laws, regulations, and third-party terms and conditions, especially regarding social media policies. This includes ensuring that employees do not defame, harass, infringe on copyrights, or violate privacy laws. Franchisees are responsible for the content their employees post on social media and must ensure it is truthful and not misleading.