What specific actions are considered a violation of the anti-harassment policy that would lead to termination for cause at Liberty Tax, and how does this relate to Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
On March 15, 2019, the parties entered into a stipulation of settlement of which the material terms of the settlement are as follows: (i) Liberty Tax agreed to implement an antiharassment policy; (ii) Liberty Tax will conduct yearly code of conduct training; (iii) Liberty Tax will terminate for cause any employee who violates the anti-harassment policy that has been substantiated as such; (iv) Liberty Tax will revise its audit committee charter to reflect that SEC filings must be pre-approved by the Audit Committee; (v) Liberty Tax will take reasonable steps to be listed on NASDAQ or NYSE; (vi) Hewitt agrees not to solicit company employees; and (vii) No party admits any liability.
Source: Item 3 — LITIGATION (FDD pages 11–16)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document does not specify what actions constitute a violation of the anti-harassment policy at Liberty Tax. However, it does state that Liberty Tax agreed to implement an anti-harassment policy as part of a settlement. Furthermore, Liberty Tax will terminate for cause any employee who violates the anti-harassment policy if the violation has been substantiated. Zoomin Groomin's FDD references Liberty Tax due to the involvement of John Hewitt, who is associated with both franchise systems.
While the FDD mentions the existence of Liberty Tax's anti-harassment policy and the consequences of violating it, it lacks specific details on what behaviors or actions are prohibited under that policy. This leaves prospective franchisees unaware of the exact standards of conduct expected and what could lead to termination for cause under the anti-harassment policy.
For a prospective Zoomin Groomin franchisee, it is important to understand the specific details of the anti-harassment policy at Liberty Tax, given John Hewitt's involvement with both companies. It would be prudent to ask the franchisor for a copy of the anti-harassment policy and seek clarification on what specific actions or behaviors are considered violations that could lead to termination. This information is crucial for ensuring compliance and maintaining a respectful workplace environment.