Does RCW 49.62.020 apply to employees of a Pearce Bespoke franchisee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Agreement may be construed to create a partnership, joint venture, agency, employment, or fiduciary relationship of any kind. None of Franchisee's employees will be considered to be Franchisor's employees. Neither Franchisee nor any of Franchisee's employees whose compensation is paid by Franchisee may in any way, directly or indirectly, expressly or by implication, be construed to be an employee of Franchisor for any purpose, most particularly with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied, or fixed by any city, state, or federal governmental agency. Franchisor will not have the power to hire or fire Franchisee's employees and has no authority to control, either directly or indirectly, the essential terms and conditions of employment of Franchisee's employees. Franchisee acknowledges and agrees that Franchisee, in Franchisee's sole and absolute discretion, shall determine all such essential terms and conditions of employment, which are defined in the Operations Manual or otherwise defined by law. Franchisee will alone exercise day-to-day control over all operations, activities, and elements of the Pearce Bespoke Franchise. Franchisee is solely responsible for the safety and well-being of Franchisee's employees and the customers of the Pearce Bespoke Franchise. All matters of safety and security are within Franchisee's discretion and control, and Franchisee's indemnification obligations set forth in Section 11 hereof shall apply to any claims made against Franchisor regarding safety or security. Franchisee acknowledges and agrees that the various requirements, prohibitions, specifications, and procedures of the Business System which Franchisee is required to comply with under this Agreement, whether set forth in the Operations Manual or otherwise, do not directly or indirectly constitute, suggest, infer, or imply that Franchisor controls any aspect or element of the day-to-day operations of the Pearce Bespoke Franchise, which Franchisee alone controls, but only constitute standards Franchisee must adhere to when exercising control of the day-to-day operations of the
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the agreement specifies that the franchisee is solely responsible for their employees. It states that the franchisee's employees are not considered employees of Pearce Bespoke. This distinction extends to mandated insurance coverage, tax contributions, and withholdings required by governmental agencies. Pearce Bespoke does not have the authority to hire or fire the franchisee's employees and does not control the terms and conditions of their employment. The franchisee has the sole discretion in determining these terms, as defined in the Operations Manual or by law.
This arrangement means that the Pearce Bespoke franchisee is responsible for all aspects of employment, including compliance with labor laws such as RCW 49.62.020 if it is applicable in their jurisdiction. The franchisee is also responsible for the safety and well-being of their employees and customers. This includes day-to-day control over operations and activities of the franchise. The franchisee's indemnification obligations cover any claims against Pearce Bespoke regarding safety or security.
In essence, Pearce Bespoke maintains an arm's-length relationship with the franchisee's employees. This is a common practice in franchising, where franchisees are considered independent contractors. This structure aims to protect the franchisor from potential liabilities related to employment matters, shifting the onus of compliance and responsibility to the franchisee. A prospective franchisee should consult with legal and labor experts to ensure full compliance with all applicable employment laws and regulations.