factual

What acknowledgement must a Face Foundrie franchisee maintain in each employee's file?

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee will receive and maintain in each of its employee's files an acknowledgement that the employee works for Franchisee and not Franchisor, and Franchisee will on a monthly basis or as otherwise requested by Franchisor acknowledge in writing to Franchisor that such acknowledgements have been completed and maintained in Franchisee's personnel files.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2025 FDD)

According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees are required to maintain specific acknowledgements in each employee's file. Specifically, the franchisee must receive and keep in each employee's file an acknowledgement that the employee works for the franchisee, not Face Foundrie itself. This distinction is crucial for legal and operational reasons, clarifying that the franchisee is the direct employer.

Furthermore, the Face Foundrie franchisee must provide written confirmation to Face Foundrie on a monthly basis, or as otherwise requested by Face Foundrie, that these acknowledgements have been completed and are being maintained in the franchisee's personnel files. This monthly confirmation ensures ongoing compliance and provides Face Foundrie with assurance that the franchisee is adhering to this requirement.

This requirement is typical in franchising, as it reinforces the legal separation between the franchisor and the franchisee's employees. It helps to avoid potential co-employment claims, where the franchisor could be held liable for the franchisee's employment practices. By ensuring that employees understand they are employed by the franchisee, Face Foundrie aims to protect its own interests and maintain a clear distinction in the employment relationship.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.