If liabilities arise from a My Salon Suite franchisee's employment-related decisions, who is responsible?

• 1. Independent Business Entities: The Company and its franchisees are independent business entities. Each franchisee operates as a separate legal entity and is solely responsible for its own employees, operations, and business decisions.
• 1. Franchisee's Autonomy: Franchisees have the autonomy to manage their own employees, including hiring, training, supervising, and terminating them. The Company does not exercise control or direct involvement in the day-to-day operations of the franchisee's business, including employment-related matters.
• 1. No Control over Employment Decisions: The Company does not control or have the authority to control the hiring, firing, scheduling, or compensation of the franchisee's employees. The franchisee is solely responsible for all employment-related decisions and compliance with applicable labor laws.
• 1. No Shared Liability: The Company and itsfranchisees operate as separate legal entities, and any liabilities arising from the actions or decisions of the franchisee, including employment-related matters, are the sole responsibility of the franchisee. The Company shall not be held liable for any claims, disputes, or damages arising from the franchisee's employment practices.
• 1. Clear Distinction: The Company maintains a clear distinction between its role as a franchisor, providing support, guidance, and brand standards, and the franchisee's role as an independent business owner responsible for their own operations, including employment-related matters.
• 1. Compliance with Laws: The franchisee is responsible for complying with all applicable employment laws, including but not limited to, minimum wage laws, overtime laws, anti-discrimination laws, and health and safety regulations. The Company encourages franchisees to seek legal advice to ensure compliance with all relevant laws and regulations.
• 1. No Joint Employer Relationship: This Acknowledgment is intended to clarify that no joint employer relationship exists between the Company and its franchisees. The Company does not exert control or direct involvement in the franchisee's employment decisions, and the franchisee is solely responsible for all employment-related matters. By signing any franchise agreement or engaging in any business relationship with the Company, the franchisee acknowledges and agrees to the terms of this Acknowledgment, confirming their understanding that no joint employer relationship exists between the Company and its franchisees.

Source: Item 23 — RECEIPTS (FDD pages 95–230)