Can the Caring Transitions franchisor participate in hiring or firing decisions of the franchisee's employees?

• (a) Generally. Franchisee shall hire, train, and supervise the appropriate personnel necessary to conduct the Franchised Business. All such personnel are under Franchisee's responsibility and direction and are employees of Franchisee and not of Franchisor. Franchisee may enter into a leased or shared employee relationship with a third party to provide employees for the Franchised Business, so long as Franchisee retains ultimate control over the hiring, compensation, supervision, training, and other terms of their employment. Franchisee shall maintain employee information in its Communication and Information System, maintain all employee records required by all applicable laws, and make such information and records available for inspection by Franchisor upon request.

• (b) Control. All employees engaged by Franchisee or other individuals who provide services to the Franchised Business or to its clients will be regarded as employees of Franchisee only and there will be no relationship between Franchisor and Franchisee's employees. Franchisee shall advise each of its employees in writing, before the commencement of their employment, that they will be employed by Franchisee only and not Franchisor. The parties acknowledge and agree that Franchisor has no authority to and shall not exercise any control over the essential terms and conditions of employment of any personnel working for or hired by Franchisee. With respect to such personnel, and without limiting the generality of the preceding sentences, only Franchisee has the power, and hereby accepts the responsibility, to hire, pay, promote, discipline, fire, train, establish employment policies, provide an employee handbook, supervise, and control their schedule and work conditions, determine pay rates and methods of payment, and maintain employment records. With respect to Franchisee's employees, Franchisor:

• i. shall not participate in hiring, firing, promotion, demotion, disciplinary, or scheduling decisions of Franchisee;

• ii. shall not supervise the work to be performed;

• iii. is not responsible for the determination or payment of wages;

• iv. shall not provide employment benefits (including workers' compensation, group health insurance, or retirement plans);

• v. shall not provide training;

• vi. shall not supply tools or equipment; and

• vii. shall not determine the applicability of minimum wage or overtime laws or exemptions;

and has no authority to do any of the foregoing.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)