Does the training provided by Hyper Kidz to my employees create an employment relationship between Hyper Kidz and my employees?
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.
15.3 Sole and Exclusive Employer of Your Employees
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the training provided by Hyper Kidz to a franchisee's employees does not create an employment relationship between Hyper Kidz and those employees. The FDD states that the franchisee acknowledges that any training Hyper Kidz provides is intended to educate the employees on the procedures, protocols, systems, and operations of a Hyper Kidz Business, with the franchisee maintaining ultimate authority over their employees. Hyper Kidz asserts that this training does not reflect an employment relationship between Hyper Kidz and the franchisee's employees.
Hyper Kidz emphasizes that franchisees are the sole and exclusive employers of their employees. Franchisees are responsible for the terms of employment, compensation, and training of their employees. The FDD also states that Hyper Kidz does not have the power to hire or terminate the employment of the franchisee's employees.
Furthermore, the franchisee agrees to assist Hyper Kidz in defending against any claim that Hyper Kidz is the employer, joint employer, or co-employer of the franchisee's employees. This includes appearing at venues to testify on Hyper Kidz's behalf and preparing affidavits to dismiss any such allegations. If the franchisee's appearance is required in an investigation where Hyper Kidz is the only named party, Hyper Kidz will cover the reasonable costs associated with the franchisee's appearance.
This arrangement is typical in franchising, where franchisees are considered independent business owners responsible for their own staff. However, franchisees should consult with legal counsel to fully understand their obligations and potential liabilities related to employment matters.