Does Extreme Art Studio have the power to hire or fire employees of the franchised business?
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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio does not have the power to directly hire or fire employees of the franchised business. The FDD states that the franchisee is responsible for hiring, training, directing, scheduling, and supervising their own employees and independent contractors.
Extreme Art Studio may provide guidance on employment policies, but the franchisee is ultimately responsible for establishing and implementing their own policies in consultation with local legal counsel. While Extreme Art Studio may certify certain employees or independent contractors for specific functions, this certification does not give them the authority to hire, fire, or control those individuals.
This arrangement is typical in franchising, where franchisees operate as independent business owners. The franchisee has control over their staff, while Extreme Art Studio focuses on brand standards, training, and overall system guidelines. This division of responsibilities allows the franchisee to manage their business according to local laws and conditions while maintaining the consistency of the Extreme Art Studio brand.