What must an Extreme Art Studio franchisee inform their employees regarding who their employer is?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the franchisee must ensure their employees understand that the franchisee, not Extreme Art Studio Franchising, LLC, is their employer. The franchisee has the sole authority and responsibility concerning employee selection and promotion.
Extreme Art Studio emphasizes that while they may provide guidance on employment policies, these are merely examples. The franchisee is responsible for establishing and implementing their own policies in consultation with local legal counsel who are well-versed in employment law. This means franchisees need to be proactive in understanding and adhering to local labor laws.
This distinction is important because it clarifies that Extreme Art Studio does not have the power to hire, fire, or control the franchisee's employees or independent contractors. The franchisee is responsible for all aspects of employment, including hiring, training, directing, scheduling, and supervising employees in the day-to-day operations of the Extreme Art Studio Business. This arrangement is typical in franchising, where the franchisee operates as an independent business owner.