What is the Aplus franchisee's responsibility for indemnifying Sunoco regarding claims from their personnel related to compensation, wages, and benefits?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.18 Exclusive Control of Premises by You.
- (A) You shall exercise and be responsible for the exclusive control of the Premises and all activities conducted thereon. You shall undertake all obligations hereunder as an independent contractor. Neither you nor your employees shall hold yourself or themselves out at any time as employees or agents of Sunoco.
- (1) You shall be solely responsible for the hiring, discipline, training, discharge, compensation, benefits, management, control, work rules, and payment and withholding of all payroll and other taxes imposed upon or determined by wages and salaries of all personnel used or employed by you, or on your behalf in connection with your business.
- (A) You shall exercise and be responsible for the exclusive control of the Premises and all activities conducted thereon. You shall undertake all obligations hereunder as an independent contractor. Neither you nor your employees shall hold yourself or themselves out at any time as employees or agents of Sunoco.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, Aplus franchisees are responsible for the exclusive control of their premises and all activities conducted there. As an independent contractor, the franchisee is responsible for all personnel matters related to their business.
Specifically, the Aplus franchisee is solely responsible for hiring, disciplining, training, discharging, compensating, providing benefits, managing, controlling, setting work rules, and paying and withholding all payroll and other taxes related to their personnel. This includes all wages and salaries. The franchisee is responsible for ensuring they are not perceived as employees or agents of Sunoco.
This means that the Aplus franchisee is responsible for handling all claims related to their employees' compensation, wages, and benefits. They must indemnify Sunoco from any claims made by their employees in these areas. This arrangement is typical in franchising, where franchisees operate as independent business owners and are responsible for their own staff and operational costs.