Who is considered the employer of individuals working at an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
remuneration, compliance with wage and hour requirements, personnel policies, benefits, recordkeeping, supervision, and discipline of employees, and you agree to indemnify us for any such liabilities we incur. You expressly agree, and will never contend otherwise, that our authority under this Franchise Agreement to certify certain of your employees or independent contractors for qualification to perform certain functions for the Extreme Art Studio Business does not directly or indirectly vest in us the power to hire, fire, or control any such employee or independent contractor. You agree that any direction you receive from us regarding employment policies should be considered as examples, that you alone are responsible for establishing and implementing your own policies, and that you understand that you should do so in consultation with local legal counsel well-versed in employment law.
5. MARKS.
5.1 OWNERSHIP AND GOODWILL OF MARKS. Our affiliate ("Trademark Owner") has licensed the Marks to us to use in connection with the franchising of Extreme Art Studio Businesses. Your non-exclusive right to use the Marks is derived only from this Franchise Agreement and limited to your operating the Franchised Business according to this Franchise Agreement and all System Standards we prescribe during its term.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the franchisee is responsible for all employment-related decisions and obligations at their franchise location. Extreme Art Studio's authority to certify certain employees or independent contractors does not give them the power to hire, fire, or control any employee or independent contractor.
The franchisee is responsible for establishing and implementing their own employment policies, and Extreme Art Studio suggests that franchisees consult with local legal counsel well-versed in employment law. This means the franchisee has the autonomy to make all employment decisions, but they also bear the responsibility of complying with all applicable employment laws and regulations.
Extreme Art Studio will not provide general business or operations training to the franchisee's employees or independent contractors but will provide limited training on the Extreme Art Studio System and brand standards to the franchisee's employees. The franchisee is responsible for training their employees and independent contractors, including any training on the day-to-day operations of the Extreme Art Studio Business. The franchisee is responsible for hiring, training, directing, scheduling and supervising their employees and independent contractors in the day-to-day operations of the Extreme Art Studio Business. This clarifies that while Extreme Art Studio offers some brand-specific training, the franchisee is in charge of comprehensive employee training and management.
This arrangement is typical in franchising, where franchisees operate as independent business owners. Franchisees must handle all aspects of employment, including hiring, firing, training, and compliance with labor laws. Prospective Extreme Art Studio franchisees should be prepared to fulfill these responsibilities or delegate them to a qualified manager.