What specific representations does Capriottis Sandwich Shop state it has NOT made to the franchisee?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
Even though this Agreement contains provisions requiring Franchisee to operate the Franchised Restaurant in compliance with Franchisor's System, Franchisor does not have actual or apparent authority to control, directly or indirectly, the day-to-day conduct and operation of Franchisee's business or employment decisions.
Franchisor (and its affiliates) will not exercise direct or indirect control over the working conditions of Franchised Restaurant personnel, except to the extent such indirect control is related to Franchisor's legitimate interest in protecting the quality of its products, services, or brand. Franchisor (and its affiliates) does not share or codetermine the employment terms and conditions of the Franchised Restaurant's employees and does not affect matters relating to the employment relationship between Franchisee and the Franchised Restaurant's employees, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. To that end, Franchisee must notify Franchised Restaurant personnel that Franchisee is their employer and that Franchisor, as the franchisor of CAPRIOTTI'S SANDWICH SHOP Restaurants, and its affiliates are not their employer or joint employer and do not engage in any employer-type activities for which only franchisees are responsible, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. Franchisee also must obtain an acknowledgment (in the form Franchisor specifies or approves) from all Franchised Restaurant employees that Franchisee (and not Franchisor or its affiliates) are their employer.
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
According to the 2025 FDD, Capriottis Sandwich Shop states that even though the Franchise Agreement contains provisions requiring the franchisee to operate the franchised restaurant in compliance with the Capriottis Sandwich Shop system, Capriottis Sandwich Shop does not have actual or apparent authority to control, directly or indirectly, the day-to-day conduct and operation of franchisee's business or employment decisions. This means that while franchisees must adhere to the brand's operational standards, they retain autonomy in managing their business and making employment-related decisions.
Capriottis Sandwich Shop also clarifies that it (and its affiliates) will not exercise direct or indirect control over the working conditions of Franchised Restaurant personnel, except to the extent such indirect control is related to Franchisor's legitimate interest in protecting the quality of its products, services, or brand. Capriottis Sandwich Shop (and its affiliates) does not share or codetermine the employment terms and conditions of the Franchised Restaurant's employees and does not affect matters relating to the employment relationship between Franchisee and the Franchised Restaurant's employees, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions.
This delineation of control is a common practice in franchising, where the franchisor sets standards and provides support, but the franchisee is responsible for the daily management and employment decisions. This arrangement allows Capriottis Sandwich Shop to maintain brand consistency while enabling franchisees to adapt to local market conditions and manage their workforce effectively. Franchisees must acknowledge that they are the employer of their restaurant personnel and secure acknowledgment from employees confirming this understanding. This helps to avoid any confusion about the employment relationship and ensures compliance with labor laws.