If it is alleged that Hyper Kidz is the employer of my employees, what actions am I required to take?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
er 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;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, if it is asserted that Hyper Kidz is 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 Hyper Kidz in defending said allegation. This includes appearing at any venue requested by Hyper Kidz to testify on their behalf. You may also be required to participate in depositions or other appearances, and/or preparing affidavits dismissing any allegation that Hyper Kidz is the employer, joint employer, or co-employer of any of your employees.
This requirement means that as a Hyper Kidz franchisee, you have a legal obligation to actively support Hyper Kidz's position that your employees are solely your responsibility. This support includes providing testimony and documentation to refute any claims that Hyper Kidz has an employment relationship with your staff. This obligation is significant because it requires you to potentially expend time and resources to defend Hyper Kidz in legal or administrative proceedings.
However, the FDD also states that if you are required or requested by Hyper Kidz to appear at any such venue when Hyper Kidz is the only named party in the investigation, action, proceeding, arbitration, or other setting, Hyper Kidz will recompense you for the reasonable costs associated with your appearance. This provides some financial protection for the franchisee, covering the direct costs of assisting Hyper Kidz in defending against such claims. It is important for a prospective franchisee to understand the scope of 'reasonable costs' and ensure clarity on what expenses will be covered by Hyper Kidz in such a situation.