Is a Dryject franchisee required to withhold and pay employment-related taxes?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You are solely responsible for determining the terms and conditions of employment for all Your employees, for all decisions concerning the hiring, firing and discipline of Your employees, and for all other aspects of labor relations and employment practices.
All employees or agents hired or engaged by or working for You will be only Your employees or agents and will not for any purpose be considered Our employees or agents or the owner of the Marks, nor subject to Our control, and in particular, We will have no authority to exercise control over the hiring or termination of employees, independent contractors, or others who work for You, their compensation, working hours or conditions, or the day-to-day activities of those people, except to the extent necessary to protect the Marks.
It is understood that You will have sole responsibility for Your employees and all acts of Your employees, and all employment-related decisions involving wages, benefits, hours of work, scheduling, hiring, firing, discipline, supervision, record keeping, taxes and other withholding, social security contributions, Medicare contributions, unemployment fund contributions and all other terms and conditions of employment.
You must disclose to each of Your employees in writing, in a form approved by Us in advance, that you are the sole employer with total control over the terms and conditions of your employee's employment and that We are not a "joint employer" of the Franchisee's employees.
You acknowledge that We do not exercise control over or have the authority to control Your employees' (1) Wages, benefits, and other compensation; (2) Hours of work and scheduling; (3) The assignment of duties to be performed; (4) The supervision of the performance of duties; (5) Work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for
discipline; (6) The tenure of employment, including hiring and discharge; and (7) Working conditions related to the safety and health. You will file Your own tax, regulatory and payroll reports with respect to Your employees or agents and operations, saving and indemnifying Us of and from any liability of any nature whatsoever by virtue of it.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, Dryject franchisees are solely responsible for all employment-related decisions and obligations, including the withholding and payment of taxes for their employees. This means that as a Dryject franchisee, you will be considered the sole employer of individuals working for your franchise and will be responsible for handling all aspects of their employment.
Specifically, the FDD states that franchisees have sole responsibility for their employees' wages, benefits, hours, scheduling, hiring, firing, discipline, supervision, record keeping, taxes, and other withholdings. This encompasses social security contributions, Medicare contributions, unemployment fund contributions, and all other terms and conditions of employment. Dryject emphasizes that it has no authority to control these aspects of the franchisee's employees' work, except to the extent necessary to protect their marks.
To ensure clarity, Dryject requires franchisees to disclose to their employees in writing that the franchisee is the sole employer with total control over the terms and conditions of their employment, and that Dryject is not a "joint employer." This is intended to prevent any confusion about who is responsible for employment-related obligations and liabilities. Furthermore, the franchisee is obligated to file their own tax, regulatory, and payroll reports related to their employees and operations, and must indemnify Dryject from any related liabilities.
In practical terms, this means that if you become a Dryject franchisee, you will need to establish systems for managing payroll, withholding taxes, and complying with all applicable employment laws. You may need to consult with legal and accounting professionals to ensure that you are meeting all of your obligations as an employer. Failing to properly handle these responsibilities could result in legal and financial repercussions for your Dryject franchise.