Under what circumstances is a Hyper Kidz franchisee prohibited from hiring a prospective employee based on their background review?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall conduct a background review of every prospective employee's criminal history and any other histories (such as motor vehicle and/or credit histories) that are required by state and local laws, regulations, and ordinances and/or that Franchisee determines to be necessary and appropriate, prior to hiring.
Franchisee shall not hire any prospective employee for any position involving entrance on or into private property if such prospective employee's background review indicates, in Franchisee's sole discretion, a propensity for violence, dishonesty, negligent, reckless, or careless behavior, or a conviction for any crime reasonably related to the prospective employee's employment including, but not limited to, you shall not employ anyone who has been convicted of a sex crime or a crime against a child.
Notwithstanding the foregoing, all matters of employment and the safety of Franchisee's customers and their clients are within Franchisee's discretion and control.
Franchisor shall not be liable to franchisee, any employee or prospective employee of Franchisee, or any third party for any act or omission of Franchisee or any employee or agent of Franchisee, and Franchisee's indemnification obligations set forth in Section 15.6 hereof shall apply to any claims, demands or actions against Franchisor arising from any act or omission of Franchisee or any employee or agent of Franchisee (including, without limitation, refusal to hire or discrimination claims or claims asserted by third parties for torts allegedly committed by any employee or agent of Franchisee).
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, a franchisee is required to conduct a background review of every prospective employee, including criminal history and any other histories required by state and local laws, regulations, and ordinances, or that the franchisee deems necessary.
The Hyper Kidz franchisee is prohibited from hiring any prospective employee for positions involving entrance onto private property if the background review indicates a propensity for violence, dishonesty, negligent, reckless, or careless behavior. This also includes a conviction for any crime reasonably related to the prospective employee's employment. Specifically, franchisees must not employ anyone convicted of a sex crime or a crime against a child.
However, the FDD states that all employment matters and the safety of the franchisee's customers are within the franchisee's discretion and control. Hyper Kidz is not liable for any act or omission of the franchisee or their employees. The franchisee is responsible for indemnifying Hyper Kidz against any claims arising from their acts or omissions, including refusal to hire or discrimination claims.