As a Dermani Medspa franchisee, are my employees considered employees of the franchisor for any purpose, including insurance or tax withholdings?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
ou understand and agree that you are and will be an independent contractor under this Agreement. Nothing in this Agreement may be interpreted as creating a partnership, joint venture, agency, employment or fiduciary relationship of any kind. Your employees are not our employees. Neither you nor any of your employees whose compensation you pay may in any way, directly or by implication, shall be considered our employee for any purpose, regardless of inclusion in mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. We do not, and will not, have the power to hire or terminate the employment of your employees. You expressly agree, and will never claim otherwise, that our authority under this Agreement does not directly or indirectly vest in us the power to influence the employment terms of any such employee.
- 10.1.2. At all times during the term of this Agreement, you shall hold yourself out to the public as an independent contractor operating pursuant to this Agreement. You shall take such action as may be necessary to do so, including, without limitation, exhibiting a notice of that fact in a conspicuous place in your offices, the content of which we reserve the right to specify.
- 10.1.3. You hereby irrevocably affirm, attest, and covenant your understanding that your employees are employed exclusively by you and in no fashion are any such employee employed, jointly employed or co-employed by us.
- 10.1.4. We and you may not make any express or implied agreements, warranties, guarantees, or representations, or incur any debt, in the name or on behalf of the other or represent that our respective relationship is other than that of franchisor and developer. We will not be obligated for any damages to any person or property directly or indirectly arising out of the Development Schedule or the business you conduct under this Agreement.
11. COMPLIANCE WITH LAWS
- 11.1. Compliance with Laws. You shall comply with all federal, state, and local laws, rules, and regulations, including, without limitation, employment, labor, and wage and hour laws, tax laws, local operating regulations, medical, and corporate practice of medicine laws and regulations.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, as a franchisee, your employees are exclusively employed by you, and not by Dermani Medspa. The FDD states that you must hold yourself out to the public as an independent contractor and take actions to ensure this is clear, including displaying a notice in your offices. Dermani Medspa and the franchisee cannot make any agreements or representations on behalf of each other, and neither party is obligated for damages arising from the other's business operations.
This means that as a Dermani Medspa franchisee, you are solely responsible for all employment-related obligations for your staff, including compliance with employment, labor, wage and hour, and tax laws. You are responsible for obtaining and maintaining all necessary permits, certificates, and licenses for your business.
The franchise agreement also includes an optional clause regarding covenants not to compete and restrictions on employing a competitor's employee. If you choose to include and enforce this clause, it does not imply that Dermani Medspa is an employer of your employees. This reinforces the independent contractor relationship and clarifies that Dermani Medspa is not involved in your employment decisions or responsibilities.
It is important to consult with legal and financial professionals to ensure full compliance with all applicable laws and regulations regarding employment. This will help you avoid potential liabilities and maintain a clear distinction between your business and Dermani Medspa.