Is Dryject considered a 'joint employer' of the Dryject franchisee's employees?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
12. KEY EMPLOYEES
A "Key Employee" as used in this Agreement is anyone who is an owner, partner, member and/or employee who acts in a management, supervisory or sales capacity for or on behalf of the Franchised Business. You shall identify all of Your Key Employees in Addendum B of this Agreement. Each individual listed in Addendum B as a Key Employee no matter when so listed, at Our option, shall attend Our Initial Training Program, and shall thereafter be jointly and severally responsible for operating the Franchised Business in accordance with the standards of Our System and this Agreement. You represent and warrant that each of the individuals designated in Addendum B will at all times abide by the System Standards of Our System, this Agreement, and the Licensed Rights; that You will at all times assume personal responsibility for their continued compliance with those System Standards; and that You will promptly notify Us if any of them shall at any time during the Term of this Agreement divest themselves of ownership, partnership, membership, or employment, as the case may be, with You. You shall amend Addendum B and submit the amended Addendum to Us whenever there is any change in Your list of Key Employees. We reserve the right to require certain individuals to be included in Your list of Key Employees.
We possess certain proprietary Confidential Information consisting of the Marks, the Intellectual Property, Our System Standards, and other methods, techniques, formats, specifications, procedures, information, systems, methods of business management, sales and promotion techniques and knowledge of and experience in the operation and franchising of DryJect franchised businesses (the "Confidential Information"). Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the employee lives or works, every Key Employee must sign a non-disclosure, non-solicitation and non-competition agreement in a form approved by Us or as We otherwise provide. You must provide a copy of each Key Employee's signed non-disclosure, non-solicitation and non-competition agreement to Us prior to such Key Employee beginning Our Initial Training Program and prior to Your disclosing Our Confidential Info
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, the franchisor does not explicitly define the relationship as a 'joint employer' with respect to the franchisee's employees. However, the FDD outlines several stipulations that suggest Dryject exerts a degree of control over certain employees of the franchisee, particularly 'Key Employees.'
Dryject requires franchisees to identify 'Key Employees,' defined as those in management, supervisory, or sales roles. These Key Employees may be required to attend Dryject's Initial Training Program and are held jointly and severally responsible for operating the franchised business according to Dryject's standards. Furthermore, Dryject mandates that Key Employees sign a non-disclosure, non-solicitation, and non-competition agreement, the form of which must be approved by Dryject. The franchisee must provide Dryject with a copy of this agreement before the Key Employee begins training or has access to confidential information.
While Dryject does not directly employ the franchisee's staff, these requirements indicate that Dryject has influence over the selection, training, and conduct of specific employees within the franchise. This level of involvement could potentially blur the lines of employer responsibility, and a prospective franchisee should consult with legal counsel to fully understand the implications of these requirements and the potential for Dryject to be considered a joint employer under applicable laws.