What employment-related liabilities are the Hyper Kidz franchisees responsible for paying?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You hereby irrevocably affirm, attest and covenant your understanding that your employees are employed exclusively by you and in no fashion are any such employee employed, jointly employed or coemployed by us. You further affirm and attest that each of your employees is under your exclusive dominion and control and never under our direct or indirect control in any fashion whatsoever. You alone hire each of your employees; set their schedules; establish their compensation rates; and pay all salaries, benefits and employment-related liabilities (such as workers' compensation insurance premiums/payroll taxes/Social Security contributions/unemployment insurance premiums). You alone have the ability to discipline or terminate your employees to the exclusion of us, and you acknowledge that we have no such authority or ability. You further attest and affirm that any minimum staffing requirements established by us are solely for the purpose of ensuring that the Hyper Kidz Business is at all times staffed at those levels necessary to operate the Hyper Kidz Business in conformity with the System and the products, services, standards of quality and efficiency, and other Hyper Kidz brand attributes known to and desired by the consuming public and associated with the Marks. You affirm, warrant and understand that you may staff the Hyper Kidz Business with as many employees as you desire at any time so long as our minimal staffing levels are achieved. You also affirm and attest that any recommendations you may receive from us regarding salaries, hourly wages or other compensation for employees are recommendations only, designed to assist you to
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are solely responsible for all employment-related liabilities for their employees. Hyper Kidz franchisees hire their own employees, set their schedules, establish compensation rates, and handle discipline and termination. Hyper Kidz maintains no control over these employees.
This means the franchisee is responsible for paying all salaries, benefits, and employment-related liabilities. These liabilities include workers' compensation insurance premiums, payroll taxes, Social Security contributions, and unemployment insurance premiums.
Hyper Kidz may provide recommendations regarding salaries or hourly wages, but these are only suggestions to help the franchisee efficiently operate the business. The franchisee has the final say in staffing and compensation decisions, as long as minimum staffing levels are met to maintain Hyper Kidz's standards. The franchisee also agrees to assist Hyper Kidz in defending against any claims that Hyper Kidz is the employer, joint employer, or co-employer of the franchisee's employees.