Who is responsible for making all necessary salary deductions and withholdings from Face Foundrie franchisee employees' salaries?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
(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, the franchisee is solely responsible for handling all salary deductions and withholdings from their employees' compensation. This includes managing contributions, taxes, and assessments required by the Federal Social Security Administration, federal and state unemployment compensation laws, and federal, state, and local income tax withholding laws.
This means that as a Face Foundrie franchisee, you will have the exclusive responsibility for all aspects of employee compensation, including wages, hours, scheduling, and working conditions. You are also responsible for hiring, transferring, suspending, laying off, recalling, promoting, assigning, disciplining, and discharging employees, as well as addressing any employee grievances.
This section of the FDD emphasizes that Face Foundrie franchisees are independent employers. Franchisees must ensure compliance with all federal, state, and local laws, ordinances, rules, and regulations related to their employees. This includes laws regarding minimum compensation, overtime, equal opportunity, civil rights, age discrimination, fair labor standards, disabilities, and family leave. Franchisees must also maintain documentation confirming that employees acknowledge they work for the franchisee, not Face Foundrie itself.