What happens if a Crown Gold Exchange franchisee uses the Marks on employment documents?

According to the 2024 Crown Gold Exchange FDD, a franchisee must use their legal name on all documents with employees and independent contractors. These documents include employment applications, time cards, pay checks, and employment and independent contractor agreements. The franchisee is explicitly prohibited from using the Marks on any of these documents.

This requirement ensures that there is no confusion about who the employer is. Crown Gold Exchange wants to make it clear that the franchisee is the sole employer and is responsible for all employment-related matters. This is further reinforced by the requirement that the franchisee and each of its employees sign an acknowledgment form stating that the franchisee alone (and not Crown Gold Exchange) is the employee's sole employer.

By mandating the use of the franchisee's legal name and prohibiting the use of Crown Gold Exchange's Marks on employment documents, Crown Gold Exchange aims to protect itself from potential liability and maintain a clear distinction between the franchisor-franchisee relationship and the employer-employee relationship. This is a common practice in franchising to avoid co-employment claims and ensure that franchisees are responsible for their own employees.