Who is responsible for the terms and conditions of employment for employees at a Cream shop?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that you are solely responsible for all decisions relating to employees, agents, and independent contractors that you may hire to assist in the operation of your Shop. You agree that any employee, agent, or independent contractor that you hire will be your employee, agent, or independent contractor, and not our employee, agent, or independent contractor. You also agree that you are exclusively responsible for the terms and conditions of employment of your employees, including recruiting, hiring, firing, training, compensation, work hours and schedules, work assignments, safety and security, discipline, and supervision. You agree to manage the employment functions of your Shop in compliance with all applicable employment laws.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the franchisee is solely responsible for the terms and conditions of employment for their employees. This includes all decisions related to employees, agents, and independent contractors hired to assist in the operation of the Cream shop.
Specifically, the franchisee is exclusively responsible for all aspects of employment, including recruiting, hiring, firing, training, compensation, work hours and schedules, work assignments, safety and security, discipline, and supervision. The franchisee must also ensure that all employment functions are managed in compliance with applicable employment laws.
This means that Cream franchisees have significant autonomy in managing their workforce, but also bear the full responsibility for compliance with labor laws and regulations. This is a common arrangement in franchising, where the franchisee operates as an independent business owner.
Prospective Cream franchisees should carefully consider the implications of being an employer, including the legal and financial responsibilities involved. They should also be prepared to develop and implement effective human resources policies and procedures to ensure compliance and maintain a positive work environment.