Does the Cost Cutters Family Hair Salon FDD include a Franchisee Participation Agreement?

[Item 15: OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS]

ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS

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.

You must have a District Manager for each 6 Cost Cutters Stores you own. That District Manager must be approved by us, be certified and successfully complete our training program. Additionally, the District Manager must be responsible for the operation and supervision of at least 6 Cost Cutters that you own, as well as supervision of the salon manager, assistant manager or other managers that you may have. The Store must have at least 1 on-site manager, whether that individual is you or another Store manager. A Store manager need not have an equity interest in you or the Cost Cutters Store. Store managers and your officers and directors must sign confidentiality and other agreements (including non-compete agreements) we specify or pre-approve (if applicable law allows). Our right to pre-approve your forms is solely to protect Confidential Information and the competitiveness of Stylestyle Stores. Under no circumstances will we control the forms or terms of employment agreements you use with Store employees or otherwise be responsible for your labor relations or employment practices. We do not limit whom your Store may hire.

Source: Item 22 — CONTRACTS (FDD page 76)