Does the Crawlspace Medic franchise agreement create an employment relationship between the franchisor and the franchisee's employees?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.1.3 Franchisee's Employees.
Franchisee acknowledges and agrees that any training Franchisor provides for Franchisee's employees is geared to impart to those employees, with Franchisee's ultimate authority, the various procedures, protocols, systems, and operations of a Crawlspace Medic outlet and in no fashion reflects any employment relationship between Franchisor and such employees.
If ever it is asserted that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees in any private or government investigation, action, proceeding, arbitration or other setting, Franchisee irrevocably agree to assist Franchisor in defending said allegation, appearing at any venue requested by Franchisor to testify on Franchisor's behalf participate in depositions, other appearances or preparing affidavits rejecting any assertion that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the franchise agreement explicitly states that no employment relationship is created between Crawlspace Medic and the franchisee's employees. The franchisee retains full control over the day-to-day operations of the franchised business. The agreement specifies that the franchisor's standards and procedures do not imply control over the franchisee's daily operations, but rather set the standards that the franchisee must adhere to.
The FDD clarifies that any training provided by Crawlspace Medic to the franchisee's employees is intended to educate them on the procedures and systems of a Crawlspace Medic outlet, with the franchisee maintaining ultimate authority over their employees. This training does not establish any employment relationship between Crawlspace Medic and the franchisee's staff.
Furthermore, the franchise agreement includes a clause where the franchisee agrees to defend Crawlspace Medic against any claims asserting that Crawlspace Medic is the employer, joint employer, or co-employer of the franchisee's employees. This includes assisting in investigations, providing testimony, and preparing affidavits to reject such assertions. This provision underscores the franchisor's intent to maintain a clear distinction between their role and the employment of the franchisee's staff, placing the responsibility and liability of employment solely on the franchisee.