Does Extreme Art Studio have the power to hire or fire the franchisee's employees?
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 hire or fire a franchisee's employees or independent contractors. The FDD states that the franchisee is responsible for hiring, training, directing, scheduling, and supervising their own employees and independent contractors in the day-to-day operations of the Extreme Art Studio business.
Extreme Art Studio may certify certain employees or independent contractors for specific functions within the Extreme Art Studio Business. However, this certification authority does not grant Extreme Art Studio the power to hire, fire, or control these individuals. The franchisee retains the sole responsibility for employment policies and their implementation, and Extreme Art Studio suggests that franchisees consult with local legal counsel to ensure compliance with employment laws.
This arrangement is typical in franchising, where franchisees operate as independent business owners. While Extreme Art Studio provides training and guidance on system standards, the franchisee maintains control over their staff. This allows the franchisee to tailor their employment practices to local market conditions and legal requirements, while still adhering to the brand's operational standards.