For Expense Reduction Analysts, who is responsible for the actions of the franchisee's employees and subcontractors?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be solely responsible for all actions of Your employees and subcontractors, including any actions of Your employees and subcontractors which may cause You to breach this Agreement. Your employees must be competent, conscientious, and properly trained. You agree and acknowledge that Your Practice Model Consultants must be approved by the Franchisor and successfully complete the Foundational Training Program before said Consulting Employee may provide any services to Clients or Prospective Clients. You will indemnify the Franchisor in respect of any loss the Franchisor may suffer as a result of the actions of Your employees and subcontractors. You are an independent contractor responsible for full control over the internal management and daily operation of the Business, and neither party to this Agreement is the agent, principal, partner, employee, employer or joint venture partner of the other party. You agree and acknowledge that Franchisor will not have any type of joint employer or other employer-related liability by virtue of this Agreement. You will comply with all insurance requirements for your employees as set out in Section 23 of this Agreement, the Manuals and your state law and local ordinances.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the franchisee is solely responsible for the actions of their employees and subcontractors. This includes any actions that may cause the franchisee to breach their franchise agreement. The franchisee must ensure their employees are competent, conscientious, and properly trained. Specifically, Practice Model Consultants must be approved by Expense Reduction Analysts and complete the Foundational Training Program before providing services to clients.
Furthermore, the franchisee is required to indemnify Expense Reduction Analysts for any losses the franchisor may suffer due to the actions of the franchisee's employees and subcontractors. This means the franchisee is responsible for protecting Expense Reduction Analysts from any claims, damages, or liabilities arising from the conduct of their personnel. The franchisee operates as an independent contractor with full control over the management and daily operations of their business, and the agreement explicitly states that neither party is an agent, principal, partner, employee, employer, or joint venture partner of the other.
This section of the FDD also clarifies that Expense Reduction Analysts will not have any joint employer or other employer-related liability due to the franchise agreement. The franchisee must comply with all insurance requirements for their employees as outlined in Section 23 of the agreement, the manuals, and all applicable state and local laws. This underscores the importance of franchisees understanding their responsibilities as employers and ensuring they have adequate insurance coverage to protect themselves and Expense Reduction Analysts from potential liabilities.