{"id":190198,"date":"2024-09-03T03:37:39","date_gmt":"2024-09-03T02:37:39","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=190198"},"modified":"2024-09-03T07:46:53","modified_gmt":"2024-09-03T06:46:53","slug":"franchisees-employers","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/franchising\/franchisees-employers\/","title":{"rendered":"What Are the Legal Responsibilities of Franchisees as Employers?"},"content":{"rendered":"\n<p><a href=\"https:\/\/legalvision.co.uk\/franchising\/signing-franchise-agreement-what-should-i-know\/\">Entering a franchise agreement<\/a> allows you to run a successful business under an established brand. However, for many, becoming a franchisee also comes with a crucial responsibility: employing and managing staff. Unlike franchisors who permit others to use their branding and business model, franchisees are often direct employers of the staff in their franchise location. It is crucial to understand the legal responsibilities of this role so you can run a compliant and successful business. This article will explain the role of franchisees as employers and provide legal insights into franchise employment practices.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Role of the Franchisee as an Employer&nbsp;<\/h2>\n\n\n\n<p>If you operate a franchise business and employ staff, you take on the role of an employer. This role means you are legally responsible for aspects such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>hiring;&nbsp;<\/li>\n\n\n\n<li>training;&nbsp;<\/li>\n\n\n\n<li>paying; and&nbsp;<\/li>\n\n\n\n<li>managing the employees who work at your location.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Not all franchisees will employ staff, and you do not need to employ staff to be a franchisee. For example, some franchise businesses like mobile vehicle repair services or coffee vans can be solo ventures that do not require you to employ others.<\/p>\n<\/div>\n\n\n\n<p>If you do employ staff, although you are part of a larger brand, the employees who work for your franchise are your responsibility, not the franchisor\u2019s. As an employer, you need to be aware of <a href=\"https:\/\/legalvision.co.uk\/employment\/here-are-five-of-the-most-important-aspects-of-employment-law\/\">employment laws in the UK<\/a>, including those governing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>wages;&nbsp;<\/li>\n\n\n\n<li>working hours;&nbsp;<\/li>\n\n\n\n<li>contracts; and&nbsp;<\/li>\n\n\n\n<li>employee rights.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>For example, you must share employment contracts with your staff that comply with the law and protect you and your employees. You must also ensure that you are adhering to minimum wage requirements.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Franchisee and Franchisor: A Non-Employment Relationship&nbsp;<\/h2>\n\n\n\n<p>It is crucial to understand that the <a href=\"https:\/\/legalvision.co.uk\/franchising\/franchises-structured\/\">franchisee and franchisor relationship<\/a> is not one of employment. You operate as an independent business owner, running a separate legal entity that uses the franchisor\u2019s brand and operational model. The franchise agreement establishes a contractual relationship between you.&nbsp;<\/p>\n\n\n\n<p>The franchisor does not directly employ you or your staff. The franchisor might stipulate particular terms around employment within the franchise agreement and set some employment procedures in the franchise operations manual. Still, they are not employers of you or your employees. This distinction has significant legal implications. You bear full responsibility for employment-related matters within your franchise location.&nbsp;<\/p>\n\n\n\n<p>Through the employment contract you share with your employees, make it clear that they are employees of your business, not the franchisor\u2019s. This clarity can help avoid misunderstandings.&nbsp;<\/p>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/03\/07054906\/wordpress-buying-a-franchise-560x792-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Buying a Franchise in the UK: A Legal Guide<\/div>\n            <div class=\"body-text\">\n                <p>Buying a franchise in the UK? Download this free legal guide to make informed decisions and avoid pitfalls.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/buying-franchise-guide.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" 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Employment Contracts and Worker Rights&nbsp;<\/h3>\n\n\n\n<p>Under UK law, employers must give their employees a written employment contract. This contract should outline the terms and conditions of their role, including the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>pay;<\/li>\n\n\n\n<li>hours of work; and&nbsp;<\/li>\n\n\n\n<li>holiday entitlements.\u00a0<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>You should seek legal advice about your employment contracts. An expert lawyer can draft these on your behalf, review and update existing drafts, and ensure they comply with the current law.<\/p>\n<\/div>\n\n\n\n<p>Employees have particular rights, including protection from unfair dismissal, unfair treatment and discrimination. As an employer, you must have policies to handle employee grievances, ensure fair treatment, and comply with equality law to prevent discrimination in the workplace. For example, if you need to dismiss an employee, you should follow a straightforward disciplinary procedure, providing warnings and allowing the employee to respond to misconduct allegations.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Health and Safety Obligations<\/h3>\n\n\n\n<p>As an employer, you are responsible for the health and safety of your employees. This responsibility includes ensuring your franchise locations comply with health and safety regulations. For example, you should:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>carry out regular risk assessments;<\/li>\n\n\n\n<li>provide employee training; and<\/li>\n\n\n\n<li>ensure your employees have access to the necessary safety equipment.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3. Payroll, Tax, and Pension Requirements&nbsp;<\/h3>\n\n\n\n<p>You are responsible for paying your employees correctly and on time. You must manage payroll, calculate taxes, and ensure compliance with <a href=\"https:\/\/www.gov.uk\/government\/organisations\/hm-revenue-customs\">HMRC<\/a> regulations to fulfil this obligation. It is a good idea to seek advice from a professional accountant who can help you with pay and accounts-related matters.&nbsp;<\/p>\n\n\n\n<p>Moreover, you must enrol eligible employees in a workplace pension scheme and ensure that you meet these pension obligations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Becoming a franchisee can involve taking on significant responsibilities as an employer. Understanding your legal responsibilities as an employer is essential for running a successful franchise business. While the franchisor provides the business model and operational framework, it is you who must:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>directly manage your relationships with your employees;<\/li>\n\n\n\n<li>comply with UK employment law;&nbsp;<\/li>\n\n\n\n<li>ensure your business meets legal payroll, pensions, and health and safety requirements;&nbsp;<\/li>\n\n\n\n<li>draft clear employment contracts; and&nbsp;<\/li>\n\n\n\n<li>set straightforward employment-related procedures to help you mitigate the risk of disputes and legal issues.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If you are a franchisee requiring advice on your employment obligations, our experienced <a href=\"https:\/\/legalvision.co.uk\/franchise-lawyers-lp\/\">franchise lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1725330812418\"><strong class=\"schema-faq-question\"><strong>Who is legally responsible for the employees in a franchise business?<\/strong><\/strong> <p class=\"schema-faq-answer\">The franchisee is the legal employer of their staff and is responsible for employment contracts, payroll, and compliance with employment laws.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1725330818693\"><strong class=\"schema-faq-question\"><strong>Can franchisees get help from the franchisor with employment matters?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">The franchisor is responsible for providing training and supporting its franchisees. They may provide guidelines or advice on managing staff, but the franchisee is legally accountable for employment-related matters.\u00a0<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/190198\" \/>            <input value=\"https:\/\/legalvision.co.uk\/franchising\/franchisees-employers\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Are the Legal Responsibilities of Franchisees as Employers?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Entering a franchise agreement allows you to run a successful business under an established brand. However, for many, becoming a franchisee also comes with a crucial responsibility: employing and managing staff. Unlike franchisors who permit others to use their branding and business model, franchisees are often direct employers of the staff in their franchise location.<a href=\"https:\/\/legalvision.co.uk\/franchising\/franchisees-employers\/\">Continue reading <span class=\"sr-only\">&#8220;What Are the Legal Responsibilities of Franchisees as Employers?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13435,"featured_media":183551,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[33],"tags":[56,219,324,2162],"class_list":["post-190198","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchising","tag-franchisee","tag-employment-law","tag-franchise-agreement","tag-roles-and-responsibilities"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Are the Legal Responsibilities of Franchisees as Employers? 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She is currently studying for a PhD in international law and has specific expertise in international law, migration and climate change. She holds a first-class LLB and LLM degrees. In addition to studying for her third Law degree, Jessica teaches Law on the LLB Law modules at the university where she is studying for her PhD. She is also a Director of a charity which supports asylum seekers and refugees. Qualifications: PhD, Law (Underway), Edge Hill University, Masters of Laws - LLM, International Human Rights Law, University of Liverpool, Bachelor of Laws - LLB, Edge Hill University.","sameAs":["https:\/\/www.linkedin.com\/in\/jessica-d-16931492\/"],"url":"https:\/\/legalvision.co.uk\/author\/jessicadrew\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/franchisees-employers\/#faq-question-1725330812418","name":"Who is legally responsible for the employees in a franchise business?","acceptedAnswer":{"@type":"Answer","text":"The franchisee is the legal employer of their staff and is responsible for employment contracts, payroll, and compliance with employment laws.\u00a0","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/franchisees-employers\/#faq-question-1725330818693","name":"Can franchisees get help from the franchisor with employment matters?\u00a0","acceptedAnswer":{"@type":"Answer","text":"The franchisor is responsible for providing training and supporting its franchisees. They may provide guidelines or advice on managing staff, but the franchisee is legally accountable for employment-related matters.\u00a0","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/190198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13435"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=190198"}],"version-history":[{"count":2,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/190198\/revisions"}],"predecessor-version":[{"id":190218,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/190198\/revisions\/190218"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/183551"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=190198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=190198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=190198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}