Does the Cool Binz franchisor have the power to hire or fire the franchisee's employees?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that, under this Agreement; you are and will be an independent contractor of ours. You will not be deemed an employee of ours for any purpose, and no employee of yours will be deemed to be an employee of ours for any purpose, most particularly with respect to any mandated or other insurance coverage, tax, or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state, or federal governmental agency. Nothing in this Agreement will be construed so as to create a partnership, joint venture, or agency. You do not have any power to obligate us for any expenses, liabilities, or other obligations, other than as is specifically provided for in this Agreement. We will not have the power to hire or fire your employees and, except as expressly provided in this Agreement, we may not control or have access to your funds or expenditures, or in any other way exercise dominion or control over the COOL BINZ Business.
You must identify yourself conspicuously in all dealings with customers, suppliers, public officials, the COOL BINZ Business' employees, and others, and in the manner we prescribe, as the owner of the COOL BINZ Business under a franchise agreement that we have awarded and to place notices of independent ownership on the forms, business vehicles, stationery, and advertising, and other materials we require you to use.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, Cool Binz states that franchisees are independent contractors. As such, Cool Binz does not have the power to hire or fire the franchisee's employees. The agreement specifies that no employee of the franchisee will be considered an employee of Cool Binz for any purpose, especially concerning insurance, taxes, or withholdings mandated by governmental agencies.
Cool Binz emphasizes that the franchise agreement should not be interpreted as creating a partnership, joint venture, or agency relationship. Franchisees do not have the authority to obligate Cool Binz for any expenses or liabilities, except as explicitly outlined in the agreement. Cool Binz also clarifies that it does not have control over the franchisee's funds, expenditures, or the overall operation of the Cool Binz business, except as expressly provided in the agreement.
The franchisee is required to identify themselves as the owner of the Cool Binz business operating under a franchise agreement in all dealings with customers, suppliers, public officials, and employees. This includes placing notices of independent ownership on forms, business vehicles, stationery, advertising, and other materials as required by Cool Binz. This reinforces the independent contractor status and clarifies that neither party can make agreements or incur debt on behalf of the other, ensuring a clear distinction between the franchisor and franchisee relationship.