Does Devon Creek's training of a franchisee's employees reflect an employment relationship between Devon Creek and those employees?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges and agrees that any training Franchisor provides for Franchisee's employees is geared to impart to those employees, with Franchisee's ultimate authority, the various procedures, protocols, systems, and operations of a Devon Creek outlet and in no fashion reflects any employment relationship between Franchisor and such employees.
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, the training that Devon Creek provides to a franchisee's employees is intended to educate them on the procedures, protocols, systems, and operations of a Devon Creek outlet. The FDD explicitly states that this training does not, in any way, indicate an employment relationship between Devon Creek and the franchisee's employees.
The franchise agreement stipulates that the franchisee acknowledges and agrees that they are the ultimate authority over their employees. The training provided by Devon Creek is simply a means of ensuring that the employees are properly trained in the Devon Creek system.
Furthermore, the franchise agreement includes a clause that protects Devon Creek from any claims of being an employer, joint employer, or co-employer of the franchisee's employees. If such a claim is ever made, the franchisee irrevocably agrees to assist Devon Creek in defending against the allegation, including testifying on Devon Creek's behalf and rejecting any assertion that Devon Creek is the employer. This clause is designed to protect Devon Creek from potential liability related to the franchisee's employees.
This type of clause is common in franchise agreements, as franchisors want to maintain control over their brand standards without being held liable for the actions of the franchisee's employees. Prospective franchisees should carefully review this clause and understand their responsibilities as the employer of their own staff.