Does the Hyper Kidz agreement require franchisees to conduct background checks on prospective employees?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.7.5 Employee Background Check.
Franchisee shall conduct a background review of every prospective employee's criminal history and any other histories (such as motor vehicle and/or credit histories) that are required by state and local laws, regulations, and ordinances and/or that Franchisee determines to be necessary and appropriate, prior to hiring.
Franchisee shall not hire any prospective employee for any position involving entrance on or into private property if such prospective employee's background review indicates, in Franchisee's sole discretion, a propensity for violence, dishonesty, negligent, reckless, or careless behavior, or a conviction for any crime reasonably related to the prospective employee's employment including, but not limited to, you shall not employ anyone who has been convicted of a sex crime or a crime against a child.
Notwithstanding the foregoing, all matters of employment and the safety of Franchisee's customers and their clients are within Franchisee's discretion and control.
Franchisor shall not be liable to franchisee, any employee or prospective employee of Franchisee, or any third party for any act or omission of Franchisee or any employee or agent of Franchisee, and Franchisee's indemnification obligations set forth in Section 15.6 hereof shall apply to any claims, demands or actions against Franchisor arising from any act or omission of Franchisee or any employee or agent of Franchisee (including, without limitation, refusal to hire or discrimination claims or claims asserted by third parties for torts allegedly committed by any employee or agent of Franchisee).
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are required to conduct background checks on prospective employees. Specifically, Hyper Kidz mandates that franchisees review the criminal history of every potential employee, as well as any other histories like motor vehicle or credit records, if required by local laws or deemed necessary by the franchisee.
Hyper Kidz franchisees must not hire anyone whose background check reveals a propensity for violence, dishonesty, negligence, recklessness, or carelessness. This also includes individuals convicted of sex crimes or crimes against children. However, the FDD states that all employment matters and customer safety remain within the franchisee's discretion and control.
This requirement ensures that Hyper Kidz franchisees take reasonable steps to maintain a safe environment for customers. While franchisees have the discretion to determine what constitutes an unacceptable background check result beyond the explicit prohibitions, they must conduct the review. Franchisees also bear responsibility for any claims arising from their employment decisions, reinforcing their role as the employer and their accountability for employee actions.