What is the Checkersrallys franchisee's responsibility regarding employment decisions for the Franchised Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You are solely responsible for all employment decisions for the Franchised Restaurant, including hiring, firing, remuneration, personnel policies, training, benefits, and maintaining supervision and discipline, regardless of whether you received advice from us on any of these subjects. You may not recruit or hire any person who is a management level employee of ours or of any Restaurant operated by us, our Affiliates or another franchisee of ours without obtaining the employer's consent, which consent may be withheld for any reason or no reason.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all employment decisions related to the Franchised Restaurant. This encompasses a wide range of responsibilities, including hiring, firing, determining remuneration, establishing personnel policies, providing training, managing benefits, and maintaining supervision and discipline of employees. This responsibility remains with the franchisee regardless of whether they receive advice or guidance from Checkersrallys on these matters.
This means that the franchisee has complete control over the workforce within their Checkersrallys restaurant. They are the employer and must handle all aspects of employment law and human resources management. This includes ensuring compliance with federal, state, and local labor laws, as well as creating a positive and productive work environment. The franchisee's decisions in these areas directly impact the success and reputation of their franchise.
However, there is a restriction on recruiting or hiring management-level employees from Checkersrallys or any restaurant operated by Checkersrallys, its affiliates, or other franchisees without obtaining the employer's consent. This consent can be withheld for any reason. This clause protects Checkersrallys and its franchisees from losing valuable employees to other parts of the Checkersrallys system. Prospective franchisees should be aware of this restriction and factor it into their hiring practices.