Is a Desi District franchisee allowed to use the Marks on employment documents?

According to Desi District's 2024 Franchise Disclosure Document, a franchisee is specifically prohibited from using the Marks on employment-related documents. The FDD states that the franchisee must use its legal name on all documents with employees and independent contractors, including employment applications, time cards, paychecks, and employment and independent contractor agreements.

This restriction ensures that there is no confusion about the employer's identity. The agreement explicitly states that the franchisee is solely responsible for the terms and conditions of employment, including hiring, training, compensation, and termination. Desi District and the franchisee are not considered joint employers, and the franchisee's employees are not agents or employees of Desi District.

This requirement is further reinforced by the stipulation that the franchisee and each of its employees must sign an acknowledgment form stating that the franchisee alone is the employee's sole employer. This measure protects Desi District from potential liabilities related to employment matters and maintains a clear distinction between the franchisor and franchisee as separate legal entities. Therefore, a Desi District franchisee must adhere to this requirement to avoid violating the franchise agreement.