What are the franchisee's obligations if it is asserted that Dermani Medspa is the employer, joint employer, or co-employer of any of the franchisee's employees?
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.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees have specific obligations to uphold the independent contractor status of their business and employees. Dermani Medspa franchisees must publicly present themselves as independent contractors operating under the Franchise Agreement, including displaying a notice to that effect in their offices. Franchisees must also affirm that their employees are exclusively employed by them and not by Dermani Medspa.
Furthermore, franchisees are responsible for complying with all employment, labor, and wage laws. They must also notify Dermani Medspa in writing within five calendar days of any claims or legal proceedings that could affect the business or create liability for either the franchisee or Dermani Medspa.
Dermani Medspa also emphasizes that any training provided to the franchisee's employees is intended to impart the procedures and operations of the franchised business and does not reflect an employment relationship between Dermani Medspa and those employees. If a claim arises asserting that Dermani Medspa is an employer, joint employer, or co-employer of the franchisee's employees, the franchisee is obligated to take actions to defend against such claims.