Does Checkers have the power to hire or fire the franchisee's employees?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 or personnel for any purpose, most particularly with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state, provincial, or federal governmental agency. We will not have the power to hire or fire your employees or personnel. You expressly agree, and will never contend otherwise, that our authority under this Agreement to certify certain of your employees or personnel for qualification to perform certain functions for your Franchised Restaurant does not directly or indirectly vest in us the power to hire, fire or control any such employee. You acknowledge and agree, and will never contend otherwise, that you alone will exercise day-to-day control over all operations, activities and elements of your Franchised Restaurant and that under no circumstance shall we do so or be deemed to do so. You further acknowledge and agree, and will never contend otherwise, that the various requirements, restrictions, prohibitions, specifications and procedures of the System which you are required to comply with under this Agreement, whether set forth in Operations Manual or otherwise, do not directly or indirectly constitute, suggest, infer or imply that we control any aspect or element of the day-to-day operations of your Franchised Restaurant, which you alone control, but only constitute standards you must adhere to when exercising your control of the day-to-day operations of your Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers does not have the power to hire or fire a franchisee's employees. The FDD states that the franchisee is responsible for the operation of their business.
The agreement specifies that Checkers will not be held liable for any damages to any person or property resulting from the franchisee's business operations. It is explicitly stated that the franchisee's employees are not considered employees of Checkers. The franchisee is solely responsible for their employees' compensation, insurance, taxes, and withholdings.
While Checkers may certify certain franchisee employees to perform specific functions, this certification does not grant Checkers the authority to hire, fire, or control those employees. The franchisee retains full control over the day-to-day operations of the restaurant. The franchisee's compliance with the standards and procedures in the Operations Manual does not imply that Checkers controls the restaurant's daily operations; it simply means the franchisee must adhere to the brand's standards.