Can Brand Standards dictate staffing levels for a Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
Brand Standards may require adequate staffing levels to operate the Cost Cutters Store in compliance with Brand Standards and may address appearance of Store personnel and courteous service to customers. However, you have sole responsibility and authority for your labor relations and employment practices, including, among other things, employee selection, promotion, termination, hours worked, rates of pay, benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. Store employees are under your control at the Cost Cutters Store. You must communicate clearly with Store employees in your employment agreements, human resources manuals, written and electronic correspondence, paychecks, and other materials that you (and only you) are their employer and that we, as the franchisor of Cost Cutters Stores, and our affiliates are not their employer and do not engage in any employer-type activities (including those described above) for which only franchisees are responsible. You must obtain an acknowledgment (in the form we specify or approve) from all Store employees that you (and not we or our affiliates) are their employer.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 58–59)
What This Means (2024 FDD)
According to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, the brand standards may dictate adequate staffing levels to operate a Cost Cutters Family Hair Salon. These standards are put in place to ensure the store complies with brand standards. These standards may also address the appearance of store personnel and courteous service to customers.
However, the franchisee has sole responsibility and authority when it comes to labor relations and employment practices. This includes employee selection, promotion, termination, hours worked, rates of pay, benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. Store employees are under the franchisee's control at the Cost Cutters Family Hair Salon.
The franchisee must communicate clearly with store employees in employment agreements, human resources manuals, written and electronic correspondence, paychecks, and other materials that the franchisee (and only the franchisee) is their employer and that Cost Cutters Family Hair Salon, as the franchisor, and its affiliates are not their employer and do not engage in any employer-type activities for which only franchisees are responsible. The franchisee must obtain an acknowledgment from all store employees that the franchisee (and not Cost Cutters Family Hair Salon or its affiliates) is their employer.