In the event of an employer assertion, what assistance must a Devon Creek franchisee provide to Devon Creek?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
If ever it is asserted that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees in any private or government investigation, action, proceeding, arbitration or other setting, Franchisee irrevocably agree to assist Franchisor in defending said allegation, appearing at any venue requested by Franchisor to testify on Franchisor's behalf participate in depositions, other appearances or preparing affidavits rejecting any assertion that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, if there is an assertion that Devon Creek is the employer, joint employer, or co-employer of any of the franchisee's employees in any investigation, action, proceeding, arbitration, or other setting, the franchisee must assist Devon Creek in defending the allegation.
Specifically, the Devon Creek franchisee must appear at any venue requested by Devon Creek to testify on Devon Creek's behalf. The franchisee must also participate in depositions and other appearances, or prepare affidavits rejecting any assertion that Devon Creek is the employer, joint employer, or co-employer of the franchisee's employees.
This requirement is included in the franchise agreement to protect Devon Creek from potential liability related to the franchisee's employees. It emphasizes that the franchisee is the employer and is responsible for all employment-related matters. This is a fairly standard clause in franchise agreements, as franchisors want to maintain a clear distinction between their role and the role of the franchisee as an employer.