Who is responsible for decisions relating to employees hired to assist in the operation of the Aplus franchised business?
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 Aplus's 2024 Franchise Disclosure Document, the franchisee has the sole responsibility for all employment-related decisions regarding their Aplus store. This includes hiring, disciplining, training, discharging, compensating, and managing employees.
Specifically, the franchisee is in charge of setting work rules and handling payroll, including the withholding and payment of all applicable taxes related to employee wages and salaries. Aplus franchisees operate as independent contractors and are responsible for the exclusive control of the premises and all activities conducted there.
This means that Aplus franchisees have significant autonomy in managing their workforce, but also bear the full responsibility for complying with all labor laws and regulations. Prospective franchisees should carefully consider the implications of being an employer, including the administrative burden and potential liabilities associated with managing employees.