Does Chesters have the authority to determine the grounds for discipline of a franchisee's employees?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
You will agree in your Agreement that we are not joint employers of your employees and other personnel. We do not and will not share or codetermine any of your employees' essential terms and conditions of employment. More specifically, in no case do we have any authority to determine or set your employees': (1) wages, benefits, and other compensation; (2) hours of work and scheduling; (3) the assignment of duties to be performed; (4) the supervision of the performance of duties; (5) work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline; (6) the tenure of employment, including hiring and discharge; and/or (7) working conditions related to the safety and health of employees. You alone have sole authority to determine any or all your employees' essential terms and conditions of employment.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–29)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters does not have the authority to determine the grounds for discipline of a franchisee's employees. Chesters explicitly states that franchisees are solely responsible for determining the essential terms and conditions of their employees' employment.
Chesters does not share or co-determine any of the employees' essential terms and conditions of employment. The franchisee has sole authority to determine all employee-related matters.
This arrangement is typical in franchising, where franchisees are considered independent business owners. This independence allows the franchisee to manage their staff according to local laws and their own business strategies, without direct interference from Chesters.