Is training provided by the Fly Fitness franchisor for the franchisee's employees considered an employment relationship?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee specifically agrees that any training Franchisor provides for Franchisee's employees is geared to impart to those employees, with Franchisee's ultimate authority, the various procedures, protocols, systems, and operations of a Fly Fitness Franchise and in no fashion reflects any employment relationship between Franchisor and such employees.
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 training that Fly Fitness provides for a franchisee's employees does not establish an employment relationship between Fly Fitness and those employees. The franchisee retains the authority over the terms and conditions of their employees' employment. The training provided by Fly Fitness is intended to educate the employees on the procedures, protocols, systems, and operations of a Fly Fitness franchise.
Fly Fitness franchisees acknowledge that they determine the essential terms and conditions of employment for their staff, as defined in the manual. This means franchisees are responsible for setting wages, benefits, and other employment terms, and are considered the employer.
Furthermore, the franchise agreement stipulates that if any claim arises asserting that Fly Fitness is the employer of the franchisee's employees, the franchisee must assist Fly Fitness in defending against that allegation. This includes providing testimony and affidavits to reject any assertion of an employment relationship between Fly Fitness and the franchisee's employees. This clause protects Fly Fitness from potential liability related to the franchisee's employees and reinforces the independent contractor relationship between the franchisor and franchisee.