If it is alleged that Hyper Kidz is the employer of the franchisee's employees, what is the franchisee required to do?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
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, franchisees have specific obligations if it's ever alleged that Hyper Kidz is the employer, joint employer, or co-employer of the franchisee's employees. This situation could arise in a private or government investigation, action, proceeding, arbitration, or other setting.
In such a case, the franchisee must assist Hyper Kidz in defending against the allegation. This assistance includes appearing at any venue requested by Hyper Kidz to testify on their behalf, participating in depositions or other appearances, and preparing affidavits that reject any assertion that Hyper Kidz is the employer, joint employer, or co-employer of the franchisee's employees. This requirement underscores the importance of maintaining a clear distinction between the franchisee's employees and Hyper Kidz to avoid potential legal complications.
This clause is designed to protect Hyper Kidz from potential liabilities related to the franchisee's employees. By requiring the franchisee's cooperation, Hyper Kidz aims to present a unified defense against any claims of employer status. Prospective franchisees should understand this obligation and be prepared to actively support Hyper Kidz in such situations, which may involve legal expenses and time commitments.