Does the Hyper Kidz franchisor have the power to hire or terminate the employment of the franchisee's employees?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
that certain of your employees are qualified to perform certain tasks for you does not directly or indirectly vest in us the power to influence the employment terms of any such employee.
You agree that you alone are to exercise day-to-day control over all operations, activities and elements of your business, and that under no circumstance shall we do so or be deemed to do so. You further acknowledge and agree, and will never claim otherwise, that the various restrictions, prohibitions, specifications and procedures of the System which you are required to comply with under this Agreement, whether set forth in our Manual or otherwise, do not directly or indirectly constitute, suggest, infer or imply
that we control any aspect or element of the day-to-day operations of your business, which you alone control, but only constitute standards you must adhere to when exercising your control of the day-to-day operations of your business.
14.2 During the term of this Agreement, you shall hold yourself out to the public as an independent contractor conducting your 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 any business premises established for the purposes hereunder and on all letterhead, business cards, forms, and as further described in the 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 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the franchisee has control over the employment of their employees. Hyper Kidz training for the franchisee's employees is intended to impart the procedures, protocols, systems, and operations of a Hyper Kidz Business, with the franchisee maintaining ultimate authority over their employees.
The FDD states that the franchisee is considered an independent contractor and is responsible for operating their business. The franchisee must also indicate clearly the independent ownership of their business and that the operations of said business are separate and distinct from the operation of a Hyper Kidz Business.
The franchisee is responsible for all obligations arising from the operation of their business. If it is ever asserted that Hyper Kidz is the employer of any of the franchisee's employees, the franchisee agrees to assist Hyper Kidz in defending against that allegation.