What must a Devon Creek franchisee do if it is asserted that Devon Creek is the employer of the franchisee's employees?
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, a franchisee has specific obligations if it's ever claimed that Devon Creek is the employer, joint employer, or co-employer of the franchisee's employees. This situation could arise in any private or government investigation, action, proceeding, arbitration, or other setting.
In such a case, the franchisee must irrevocably agree to assist Devon Creek in defending against the allegation. This assistance includes appearing at any venue requested by Devon Creek to testify on their behalf. The franchisee must also participate in depositions and other appearances, or prepare affidavits.
The franchisee's actions must consistently reject any assertion that Devon Creek is the employer, joint employer, or co-employer of the franchisee's employees. This requirement underscores the importance of maintaining a clear distinction between the franchisee's employees and the franchisor to avoid potential legal and financial liabilities for Devon Creek.