Is the Dryer Vent Squad Franchise Agreement considered an employment agreement?

According to the 2024 Dryer Vent Squad Franchise Disclosure Document, the Confidentiality Agreement is explicitly stated not to be an employment agreement. The sample Confidentiality Agreement included as Exhibit 3 clarifies that it is only related to the confidential information, materials, and access provided in connection with the Dryer Vent Squad Business.

This distinction is important for prospective Dryer Vent Squad franchisees because it clarifies the legal relationship between the franchisee and any employees or contractors they hire. The franchisee, not DVS Holdings, Inc., is responsible for managing their own personnel and ensuring they comply with the confidentiality terms. The franchisor, DVS Holdings, Inc. is identified as a third-party beneficiary of the confidentiality agreement, highlighting their interest in protecting the Dryer Vent Squad system's confidential information.

It is also important to note that the FDD recommends that franchisees have the confidentiality agreement reviewed and approved by an independent local attorney before using it with an employee or contractor. This is a standard practice in franchising, as franchisees are responsible for ensuring their business operations comply with all applicable laws and regulations.