Is a Kidokinetics franchisee responsible for selecting, retaining, and paying their employees?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee is solely responsible for: (i) selecting, retaining and paying Franchisee's employees; (ii) the payment of all invoices for the purchase of goods and services used in connection with operating the Kidokinetics Business; and (iii) determining whether, and on what terms, to obtain any financing or credit that Franchisee deems advisable or necessary for the conduct of the Kidokinetics Business.
Franchisee agrees to pay all current obligations and liabilities to suppliers, lessors, and creditors on a timely basis.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisee is indeed responsible for all aspects of their employees. Specifically, the franchisee is solely responsible for selecting, retaining, and paying their employees. This means the franchisee has the autonomy to choose who they hire, manage their employment, and handle their compensation.
This responsibility extends to ensuring that employees maintain a neat and clean appearance and provide competent and courteous service. Poorly trained employees or discourteous service can be considered a default of the Franchise Agreement, highlighting the importance of proper employee management. Kidokinetics also requires that all employees of the Kidokinetics Business wear uniforms or clothes conforming to Kidokinetics's specifications as to style, color, and design.
Furthermore, the franchisee is responsible for paying all employee-related taxes, including employee withholding taxes and FICA taxes, to federal, state, and local governments. This underscores the franchisee's role as the employer and their obligation to comply with all relevant employment laws and regulations. Franchisees must also ensure their Kidokinetics Business complies with all applicable international, federal, state and local laws pertaining to the privacy of customer, employee, and transactional information.