Are employees of a Hyper Kidz franchisee considered employees of the franchisor?

r the death, disability or termination of the predecessor manager. Each successor general manager must satisfactorily complete our initial training program within thirty (30) days of appointment by you.

• 11.7.3 You shall hire all employees of the Hyper Kidz Business and shall be exclusively responsible for the terms of their employment, compensation and for the proper training of such employees in the operation of the Hyper Kidz Business. You understand that your employees are not and will not be considered to be our employees in any manner. We may require you to obtain confidentiality and noncompetition agreements from certain of your employees. You shall establish at the Hyper Kidz Business for all employees a training program meeting the standards prescribed by us.
• 11.7.4 During the term of this Agreement, we shall not directly or indirectly employ or seek to employ any person who is employed by you or by any entity controlled by you nor induce any such person to leave said employment without your prior written consent.
• 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).

11.8 Insurance

• 11.8.1 During the term of this Agreement, and prior to commencing any operations under this Agreement, you shall maintain in force under policies of insurance issued by licensed insurers approved by us the categories and amounts of insurance coverage specified by us in this Agreement and in the Operations Manual. All policies must be written by a responsible carrier or carriers that we determine to be acceptable, that are rated at least "A" with A.M. Best, and that are licensed to do business in the state in which your Hyper Kidz Business is located. You acknowledge and understand that we have the right to change our insurance requirements, and you shall comply with such changes. As of the date of this Agreement, our current insurance requirements include:
• (a) public/general liability insurance, including child molestation coverage, in the amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, and Two Hundred Fifty Thousand Dollars ($250,000) damage to rented premises per occurrence;
• (b) umbrella liability insurance in the amount of One Million Dollars ($1,000,000);
• (c) personal and advertising injury coverage with limits of One Million Dollars ($1,000,000) per occurrence and Ten Thousand Dollars ($10,000) per person medical benefits;
• (d) products/completed operations coverage of One Million Dollars ($1,000,000) aggregate;
• (e) property damage insurance including all perils coverage to personal property with a minimum amount of Four Hundred Thousand Dollars ($400,000);
• (f) automobile insurance for any owned, non-owned or hired vehicles, and including uninsured/underinsured motorist coverage, as required by the state in which the Hyper Kidz Business is located;
• (g) business interruption insurance to cover lost income for up to twelve (12) months;
• (h) money and securities insurance of not less than Ten Thousand Dollars ($10,000) per occurrence inside and One Thousand Dollars ($1,000) per occurrence outside;
• (i) workers compensation and employer liability insurance in the amounts required by the state in which the Hyper Kidz Business is located; and
• (j) any insurance required by the terms of your lease or that we may require in the future.
• 11.8.2 None of your insurance policies shall have a deductible of greater than One Thousand Dollars ($1,000).

Source: Item 22 — CONTRACTS (FDD page 52)