Is Face Foundrie's franchisor considered a third-party beneficiary of the employment agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will not include the Marks on any employment- or personnel-related documents, including without limitation employment applications, employment agreements, or methods of payment to its employees.
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.
- (i) Franchisee has no authority to employ or engage persons on behalf of Franchisor, and NO EMPLOYEES, INDEPENDENT CONTRACTORS OR AGENTS OF
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
Based on the 2025 Face Foundrie Franchise Disclosure Document, the franchisor, Face Foundrié Franchising L.L.C., is not a third-party beneficiary of the employment agreement between the franchisee and its employees. The FDD states that the franchisee must ensure that each employee acknowledges they work for the franchisee, not the franchisor. The franchisee must maintain these acknowledgements in the employee's files and confirm to Face Foundrie that these acknowledgements are completed and maintained. This arrangement clarifies that the employment relationship is solely between the franchisee and the employee.
Face Foundrie emphasizes the independent contractor relationship between the franchisor and the franchisee. The franchisee is responsible for identifying itself as the owner of the Facial Bar in all dealings with employees. The franchisee cannot make any agreements or incur any debt on Face Foundrie's behalf, reinforcing the separation between the two entities. This is a common arrangement in franchising, where the franchisee operates independently while adhering to the franchisor's system and standards.
While Face Foundrie is not a third-party beneficiary to the employment agreement, the franchisor does maintain certain controls to protect its brand and system. For example, the franchisee cannot include Face Foundrie's trademarks on any employment-related documents. This protects Face Foundrie's brand identity and ensures consistency across all franchise locations. Additionally, employees will be trained by Face Foundrie and learn confidential information about the Face Foundrie system, and are required to comply with certain obligations as a condition of their employment.