What is the Crave Cookies Franchisee's responsibility regarding the actions of its personnel?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Sole Responsibility.
Franchisee is solely responsible for the terms and conditions of employment of all of its personnel, including recruiting, hiring, training, scheduling, supervising, compensation, and termination.
Franchisee is solely responsible for all actions of its personnel.
Franchisee and Crave Cookies Franchising are not joint employers, and no employee of Franchisee will be an agent or employee of Crave Cookies Franchising.
Within seven days of Crave Cookies Franchising's request, Franchisee and each of its employees will sign an acknowledgment form stating that Franchisee alone (and not Crave Cookies Franchising) is the employee's sole employer.
Franchisee will use its legal name on all documents with its employees and independent contractors, including, but not limited to, employment applications, time cards, pay checks, and employment and independent contractor agreements, and Franchisee will not use the Marks on any of these documents.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the franchisee bears sole responsibility for the actions of their personnel. This means that the franchisee is accountable for everything their employees do while on the job.
This responsibility extends to all aspects of employment, including recruiting, hiring, training, scheduling, supervising, compensating, and even terminating employees. The franchisee is considered the sole employer of their staff, and Crave Cookies Franchising is not a joint employer nor responsible for the franchisee's employees' actions. To ensure clarity, Crave Cookies Franchising requires the franchisee and each employee to sign an acknowledgment form confirming that the franchisee alone is the employer.
This arrangement protects Crave Cookies Franchising from potential liabilities arising from the actions of the franchisee's employees. It also means that the franchisee has significant control over their staff but must also manage all associated risks and responsibilities. The franchisee must use their legal name on all employment-related documents and not use the Crave Cookies's trademarks on these documents, further emphasizing the separation between the franchise and its employees.
For a prospective Crave Cookies franchisee, this highlights the importance of careful hiring, thorough training, and diligent supervision of employees. Any misstep by an employee could potentially lead to direct liability for the franchisee, making effective management practices crucial for protecting their investment and maintaining the integrity of the Crave Cookies brand.