Does Stretch Zone consider any employee of the franchisee to be an employee of Stretch Zone for any purpose?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Employee Information and Assistance. We will provide to you employee hiring information including pay scale suggestions and a standardized interviewing/selection system as described in the Operations Manual. No employee of yours is an employee of ours for any purpose whatsoever. You are solely responsible for the hiring, disciplining, supervising, promoting and firing of your employees and the establishment of their salaries as provided in Section 4.5 of the Franchise Agreement. (Section 2.9 of the Franchise Agreement.)
Source: Item 11 — ITEM -11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–44)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, Stretch Zone explicitly states that the franchisee's employees are not considered employees of Stretch Zone for any purpose. The FDD emphasizes that the franchisee is solely responsible for all aspects of their employees' employment, including hiring, disciplining, supervising, promoting, and firing, as well as establishing their salaries. This delineation is further reinforced by referencing Section 4.5 of the Franchise Agreement.
This aspect of the franchise agreement is standard practice in the franchise industry, as it ensures that the franchisor is not held liable for the actions or management of the franchisee's staff. It also allows the franchisee to have greater control over their business's staffing decisions, tailoring their team to the specific needs of their location and clientele.
For a prospective Stretch Zone franchisee, this means they will have complete autonomy in managing their employees but also bear the full responsibility for all employment-related matters. This includes compliance with labor laws, managing payroll, and handling any employee disputes. Franchisees should ensure they have adequate resources and expertise to effectively manage their staff or seek professional assistance to navigate these responsibilities.