If it is alleged that Hyper Kidz is the employer of a franchisee's employees, what assistance is the franchisee obligated to provide?

According to the 2024 Hyper Kidz Franchise Disclosure Document, if it is ever asserted that Hyper Kidz is the employer, joint employer, or co-employer of any of a franchisee's employees in any private or government investigation, action, proceeding, arbitration, or other setting, the franchisee irrevocably agrees to assist Hyper Kidz in defending said allegation. This includes appearing at any venue requested by Hyper Kidz to testify on their behalf.

Specifically, the franchisee may be required to submit to depositions, other appearances, and/or prepare affidavits dismissing any allegation that Hyper Kidz is the employer, joint employer, or co-employer of the franchisee's employees. If Hyper Kidz is the only named party in any such investigation, action, proceeding, arbitration, or other setting, and the franchisee's appearance is required or requested by Hyper Kidz, Hyper Kidz will recompense the franchisee for the reasonable costs associated with appearing at any such venue.

This requirement underscores the importance of franchisees maintaining clear and distinct employment practices, as Hyper Kidz seeks to avoid any co-employment liability. The franchisee's cooperation is essential to defend against any claims that could potentially implicate Hyper Kidz in employment-related issues, and the agreement outlines the franchisee's responsibilities in such situations.