Are Crave Cookies Franchising and the franchisee joint employers?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
s attire, uniform, personal appearance and hygiene standards set forth in the Manual.
- (d) Qualifications. Crave Cookies Franchising may set minimum qualifications for categories of employees employed by Franchisee.
- (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' 2025 Franchise Disclosure Document, Crave Cookies Franchising and its franchisees are not considered joint employers. The FDD explicitly states that the franchisee is solely responsible for all employment-related matters, including hiring, training, compensation, and termination of their personnel. This means that the franchisee, not Crave Cookies Franchising, is legally responsible for the employees working at the franchise location.
This distinction has significant implications for prospective franchisees. It means that the franchisee is responsible for complying with all labor laws and regulations, including wage and hour laws, anti-discrimination laws, and workplace safety regulations. The franchisee is also responsible for handling any employee disputes or claims. Crave Cookies Franchising may set minimum qualifications for categories of employees employed by the franchisee.
To further emphasize this separation, Crave Cookies requires franchisees and their employees to sign an acknowledgment form confirming that the franchisee is the sole employer. Additionally, franchisees must use their legal name on all employment-related documents and are prohibited from using Crave Cookies' trademarks on these documents. This reinforces the legal separation between the franchisor and the franchisee's employees.
While Crave Cookies Franchising may require the Principal Executive or other employees to complete training programs, and may set standards for personnel appearance and service, these stipulations do not establish a joint employer relationship. The franchisee retains control over the day-to-day management and employment decisions, solidifying their role as the sole employer.