Are the franchisee's employees considered employees of Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
third party. We will not be obligated for any damages to any person or property arising directly or indirectly out of the operation of your business hereunder.
None of your employees or other personnel will be considered to be employees or personnel of ours. Neither you nor any of your employees or personnel whose compensation you pay may in any way, directly or indirectly, expressly or by implication, be construed to be our employee
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the employees of a Checkers franchisee are not considered employees of Checkers. The FDD states that the franchisee is solely responsible for their employees and Checkers will not be held liable for any issues arising from the operation of the franchisee's business.
This distinction is important because it clarifies that the franchisee is an independent business owner, responsible for all employment-related matters. This includes hiring, firing, training, and managing employees, as well as handling their compensation and benefits. Checkers maintains an arm's-length relationship with the franchisee's staff.
For a prospective Checkers franchisee, this means they will have the autonomy to manage their own workforce but also bear the full responsibility for it. They must comply with all applicable labor laws and regulations, and handle any employee-related disputes or liabilities. This arrangement is typical in franchising, where franchisees operate as independent entities.
This also means that Checkers is not obligated for any damages to any person or property arising directly or indirectly out of the operation of the franchisee's business.