Are Crdn franchisees obligated to comply with all applicable laws, licenses, permits, and taxes?
Crdn Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.11 Compliance with Law.
Franchisee shall obtain and maintain in effect all required licenses, permits and certificates related to the operation of the Franchised Business and shall operate the Franchised Business in full compliance with all applicable federal, state and local laws, ordinances, by-laws and regulations, including without limitation all government regulations related to: (1) licensing and certification; (2) occupational hazards and health; (3) handling, storage, and disposal of chemicals and other materials of a similar nature; (4) privacy and electronic commercial messaging; (5) environmental matters; (6) workers' compensation; (7) insurance; (8) employment insurance and withholding; and (9) payment of federal and state income taxes, Social Security taxes, and sales taxes and other required withholdings and remittances.
Additionally, Franchisee must comply with all state and federal labor and employment laws, including, but not limited to, the Fair Labor Standards Act, Family and Medical Leave Act, Occupational Safety and Health Act, Employee Retirement Income Security Act, Title VII, Age Discrimination in Employment Act, and the Affordable Care Act.
Source: Item 23 — RECEIPTS (FDD pages 78–268)
What This Means (2025 FDD)
According to Crdn's 2025 Franchise Disclosure Document, franchisees are obligated to comply with all applicable federal, state, and local laws, ordinances, by-laws, and regulations related to the operation of the franchised business. This includes obtaining and maintaining all required licenses, permits, and certificates.
Crdn franchisees must adhere to government regulations related to licensing and certification, occupational hazards and health, handling, storage, and disposal of chemicals, privacy and electronic commercial messaging, environmental matters, workers' compensation, insurance, employment insurance and withholding, and payment of federal and state income taxes, Social Security taxes, sales taxes, and other required withholdings and remittances. Franchisees must also comply with all state and federal labor and employment laws, including the Fair Labor Standards Act, Family and Medical Leave Act, Occupational Safety and Health Act, Employee Retirement Income Security Act, Title VII, Age Discrimination in Employment Act, and the Affordable Care Act.
Crdn also requires franchisees to adhere to good business practices, observe high standards of honesty, integrity, fair dealing, and ethical business conduct in all dealings with customers and suppliers. Franchisees must also notify Crdn if any action, suit, or proceeding is commenced against them or their franchised business. These obligations ensure that Crdn franchisees operate their businesses legally and ethically, protecting both the franchisee and the brand's reputation.