Are employees, independent contractors, or agents of the Face Foundrie franchisee deemed to be employees, independent contractors, or agents of the franchisor?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
(c) During the Term, Franchisee agrees as follows:
(i) Franchisee has no authority to employ or engage persons on behalf of Franchisor, and NO EMPLOYEES, INDEPENDENT CONTRACTORS OR AGENTS OF
FRANCHISEE SHALL BE DEEMED TO BE EMPLOYEES, INDEPENDENT CONTRACTORS OR AGENTS OF FRANCHISOR, EACH OF WHICH SHALL AT ALL TIMES REMAIN FRANCHISEE'S EMPLOYEES, INDEPENDENT CONTRACTORS OR AGENTS, AS APPLICABLE. SUBJECT TO THE TERMS OF THIS AGREEMENT, FRANCHISEE HAS SOLE AND EXCLUSIVE CONTROL OVER ITS LABOR AND EMPLOYEE RELATIONS POLICIES, AND ITS POLICIES RELATING TO WAGES, HOURS, SCHEDULING AND WORKING CONDITIONS OF ITS EMPLOYEES. FRANCHISEE HAS THE SOLE AND EXCLUSIVE RIGHT TO HIRE, TRANSFER, SUSPEND, LAY OFF, RECALL, PROMOTE, ASSIGN, DISCIPLINE AND DISCHARGE ITS EMPLOYEES AND TO RESPOND TO EMPLOYEE GRIEVANCES.
(ii) Franchisee is solely responsible for all salaries and other compensation of all its employees and will make all necessary salary deductions and withholdings from its employees' salaries and other compensation, and is solely responsible for the payment of any and all contributions, taxes and assessments and all other requirements of the Federal Social Security Administration, Federal and state unemployment compensation laws, Federal, state and local withholding of income tax laws on all salary and other compensation of its employees and any other laws affecting the income or withholdings of employees' wages.
(iii) Franchisee will comply (and will cause its employees to comply) with all other Federal, state or local laws, ordinances, rules, or regulations regarding its employees, including, but not limited to, Federal or state laws or regulations regarding minimum compensation, overtime and equal opportunity for employment, the Federal Civil Rights Acts, Age Discrimination in Employment Act, the Federal Fair Labor Standards Act, the Americans With Disabilities Act and the Family Leave Act.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, employees, independent contractors, or agents of the franchisee are not considered employees, independent contractors, or agents of the franchisor. The agreement explicitly states that these individuals remain solely the responsibility of the franchisee. This distinction is crucial for liability and operational control.
Face Foundrie franchisees have exclusive control over their labor and employee relations policies. This includes decisions about wages, hours, scheduling, and working conditions. The franchisee is also solely responsible for hiring, transferring, suspending, laying off, recalling, promoting, assigning, disciplining, and discharging employees, as well as handling employee grievances. This independence allows the franchisee to manage their staff according to local laws and business needs, without direct interference from Face Foundrie.
The franchisee is also responsible for all salary payments, deductions, withholdings, contributions, taxes, and assessments related to their employees. They must comply with all federal, state, and local laws regarding employment, including those related to minimum compensation, overtime, equal opportunity, and various acts such as the Civil Rights Acts, Age Discrimination in Employment Act, Fair Labor Standards Act, Americans With Disabilities Act, and the Family Leave Act. This ensures that the franchisee bears the full responsibility for employment-related legal compliance.
Face Foundrie emphasizes the independent contractor relationship between the franchisor and franchisee. The franchisee must identify themselves as the owner of the Facial Bar in all dealings with customers, lessors, contractors, suppliers, public officials, and employees. They must also display notices of independent ownership on forms, business cards, stationery, advertising, and other materials. This reinforces the separation between the franchisee's business operations and the franchisor, clarifying that Face Foundrie is not liable for the franchisee's actions or obligations.