If it is asserted that Mr. Sandless is the employer of a franchisee's employee, what does the franchisee irrevocably agree to do?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You specifically agree that any training we provides for your employees is geared to impart to those employees, with your ultimate authority, the various procedures, protocols, systems, and operations of a Mr. Sandless outlet pursuant to the System and in no fashion reflects any employment relationship between us and such employees. If ever it is 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, participate in depositions, other appearances or preparing affidavits rejecting any assertion that Franchisor is the employer, joint employer or co-employer of any of your employees.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, if it is ever alleged that Mr. Sandless is the employer, joint employer, or co-employer of a franchisee's employee in any private or government investigation, action, proceeding, arbitration, or other setting, the franchisee irrevocably agrees to assist Mr. Sandless in defending against that allegation.
This assistance includes appearing at any venue requested by Mr. Sandless to testify on their behalf, participating in depositions and other appearances, and preparing affidavits rejecting any assertion that Mr. Sandless is the employer, joint employer, or co-employer of the franchisee's employees. This clause is designed to protect Mr. Sandless from potential liabilities related to the franchisee's employees.
This requirement is fairly common in franchise agreements, as franchisors want to maintain a clear distinction between their role and the franchisee's role as the employer. By including this clause, Mr. Sandless aims to ensure that franchisees actively support their position as the sole employer of their staff, which can help mitigate legal risks and maintain the integrity of the franchise model.