What is the Fly Fitness franchisee's responsibility to assist the franchisor in defending against allegations of being a joint employer?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
If ever it is asserted that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees in any private or government investigation, action, proceeding, arbitration or other setting, Franchisee irrevocably agrees to assist Franchisor in defending said allegation, appearing at any venue requested by Franchisor to testify on Franchisor's behalf, participate in depositions, other appearances or preparing affidavits rejecting any assertion that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee has specific obligations if it's ever alleged that Fly Fitness is the employer, joint employer, or co-employer of the franchisee's employees. The franchisee must assist Fly Fitness in defending against this allegation.
This assistance includes appearing at any venue requested by Fly Fitness to testify on their behalf. The franchisee must also participate in depositions and prepare affidavits. These affidavits must reject any assertion that Fly Fitness is the employer, joint employer, or co-employer of the franchisee's employees.
This requirement means a Fly Fitness franchisee could be compelled to spend time and resources defending Fly Fitness against legal claims related to employment issues. This could involve travel, legal consultation, and preparation of legal documents, potentially creating a significant burden for the franchisee. It is important to note that the franchisee bears the responsibility of determining the terms and conditions of employment for their employees, as stated in the manual.