Does Crawlspace Medic training for franchisee employees create an employment relationship with the franchisor?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Crawlspace Medic's 2024 Franchise Disclosure Document, the training that Crawlspace Medic provides to a franchisee's employees does not create an employment relationship between the franchisor and those employees. The FDD states that the training is designed to educate the employees on the procedures, protocols, systems, and operations of a Crawlspace Medic outlet, with the franchisee retaining ultimate authority over their employees.
This means that the franchisee is solely responsible for managing and supervising their employees, including hiring, firing, and determining wages and benefits. Crawlspace Medic's role is limited to providing training on the Crawlspace Medic system, and this training does not give them any control over the employees' day-to-day activities or employment conditions.
The Franchise Agreement stipulates that the franchisee acknowledges and agrees that they alone exercise day-to-day control over all aspects of the Franchised Business. The franchisee also 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 clause protects Crawlspace Medic from potential liability related to the franchisee's employees and reinforces the independent contractor relationship between the franchisor and the franchisee.