Is a Dermani Medspa franchisee solely responsible for employment decisions?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
You are solely responsible for all employment decisions and functions of the Franchised Business including, without limitation, those related to hiring, firing, training, compliance with wage and hour requirements, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees, regardless of whether you receive advice from us on these subjects.
You acknowledge and agree that all personnel decisions, including hiring, firing, disciplining, compensation, benefits, and scheduling, shall be made by you, without any influence or advice from us, and such decisions and actions shall not be, nor be deemed to be, a decision or action of us.
Further, it is the intention of the parties to this Agreement that we shall not be deemed a joint employer with you for any reason;
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are indeed solely responsible for all employment decisions within their franchised business. This encompasses all aspects of the employment lifecycle, including hiring, firing, training, compliance with wage and hour laws, creating personnel policies, scheduling, managing benefits, maintaining records, supervising employees, and implementing disciplinary actions. Dermani Medspa may offer advice on these subjects, but the franchisee retains ultimate decision-making authority.
This arrangement means that Dermani Medspa franchisees have the autonomy to manage their staff according to their own judgment and in compliance with applicable laws. However, it also means that franchisees bear the full responsibility and liability for all employment-related issues that may arise. This includes potential legal claims related to discrimination, wrongful termination, or wage disputes. Franchisees must ensure they are well-versed in employment law or seek professional advice to avoid costly mistakes.
The FDD explicitly states that Dermani Medspa is not to be considered a joint employer with the franchisee. This is a critical point that protects Dermani Medspa from potential liability related to the franchisee's employment practices. Franchisees must acknowledge and agree that all personnel decisions are made independently, without influence from Dermani Medspa, and that these decisions are not attributable to Dermani Medspa.
While Dermani Medspa provides system standards that franchisees must adhere to, these standards do not extend to direct control over employment decisions. The system standards may regulate the maintenance of a competent and trained staff, but the franchisee is responsible for implementing these standards through their own hiring and management practices. This division of responsibility is common in franchising, where the franchisor sets overall standards and the franchisee manages day-to-day operations, including employment matters.