As a Hyper Kidz franchisee, what actions are required to demonstrate that I am an independent licensee?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
During the term of this Agreement, you shall hold yourself out to the public as an independent licensee conducting your Hyper Kidz Business operations pursuant to the rights granted by us. You agree to take such action as shall be reasonably necessary to that end, including, without limitation, exhibiting a notice of that fact in a conspicuous place on the Hyper Kidz Business premises established for the purposes hereunder or on all letterhead, business cards, forms, and as further described in the Operations Manual. We reserve the right to specify in writing the content and form of such notice.
You acknowledge and agree that any training we provide for your employees is geared to impart to those employees, with your ultimate authority, the various procedures, protocols, systems and operations of a Hyper Kidz Business and in no fashion reflects any employment relationship between us and such employees. If it is ever asserted that we are the employer, joint employer or co-employer of any of your employees in any private or government investigation, action, proceeding, arbitration or other setting, you irrevocably agree to assist us in defending said allegation, appearing at any venue requested by us to testify on our behalf; participating in depositions or other appearances; or preparing affidavits rejecting any assertion that we are the employer, joint employer or co-employer of any of your employees.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, franchisees must present themselves as independent licensees to the public. This includes displaying a notice of their independent status conspicuously on the Hyper Kidz Business premises and on all letterhead, business cards, and forms. The specific content and format of this notice can be specified in writing by Hyper Kidz.
Hyper Kidz provides training for franchisee's employees to teach them the procedures, protocols, systems, and operations of a Hyper Kidz Business. This training does not reflect any employment relationship between Hyper Kidz and the franchisee's employees. If any claim arises asserting that Hyper Kidz is the employer of the franchisee's employees, the franchisee must assist Hyper Kidz in defending against this allegation. This includes appearing at venues to testify, participating in depositions, and preparing affidavits to reject any assertion of an employment relationship between Hyper Kidz and the franchisee's employees.
These requirements ensure that the franchisee is clearly seen as an independent entity responsible for their own business operations and employees. This helps to protect Hyper Kidz from potential liabilities related to the franchisee's business practices and employment decisions. By adhering to these guidelines, franchisees maintain their independent contractor status and avoid creating any implied employment relationship between their staff and Hyper Kidz.