If it is alleged that Crawlspace Medic is the employer of a franchisee's employee, what is the franchisee obligated to do?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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, if it is ever asserted that Crawlspace Medic is the employer, joint employer, or co-employer of any of the franchisee's employees in any private or government investigation, action, proceeding, arbitration, or other setting, the franchisee is obligated to assist Crawlspace Medic in defending the allegation.
This assistance includes appearing at any venue requested by Crawlspace Medic to testify on their behalf, participating in depositions and other appearances, and preparing affidavits. The franchisee must reject any assertion that Crawlspace Medic is the employer, joint employer, or co-employer of the franchisee's employees.
This clause emphasizes that the franchisee is solely responsible for the day-to-day control and operations of their franchise, and that Crawlspace Medic's training and operational standards do not imply an employment relationship between Crawlspace Medic and the franchisee's employees. This is a fairly standard provision in franchise agreements, intended to protect the franchisor from potential liability related to the franchisee's employees.