Is the Face Foundrie franchisee responsible for all salaries and compensation of their employees?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, the franchisee is solely responsible for all salaries and other compensation of their employees. This includes making all necessary salary deductions and withholdings from employee paychecks.
Furthermore, the Face Foundrie franchisee is responsible for the payment of all contributions, taxes, and assessments required by the Federal Social Security Administration, federal and state unemployment compensation laws, federal, state, and local income tax withholding laws, and any other laws affecting employee income or withholdings. This means the franchisee must handle all aspects of employee compensation and ensure compliance with all applicable laws and regulations.
In addition to managing wages and taxes, the Face Foundrie franchisee must also comply with all federal, state, and local laws, ordinances, rules, or regulations regarding their employees. This includes laws related to minimum compensation, overtime, equal opportunity for employment, and various federal 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. The franchisee is also responsible for ensuring their employees comply with these laws.