Does Chesters have the authority to determine the wages 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 wages, benefits, or other compensation of a franchisee's employees. Chesters explicitly states that they are not joint employers of the franchisee's personnel and will not share or co-determine any essential terms and conditions of employment.
The FDD clarifies that Chesters has no authority over various aspects of a franchisee's employees' terms of employment. These include wages, benefits, compensation, work hours, scheduling, job assignments, supervision, work rules, disciplinary actions, tenure, hiring, discharge, and working conditions related to safety and health. The franchisee has sole authority to determine these essential terms and conditions.
This arrangement is typical in franchising, where franchisees are considered independent business owners. This independence allows franchisees to manage their businesses according to local market conditions and labor laws, while Chesters focuses on maintaining brand standards and providing support. This division of responsibilities helps to avoid potential legal issues related to joint employment.
Prospective Chesters franchisees should understand that they are fully responsible for all employment-related decisions and liabilities. This includes complying with all applicable wage and hour laws, providing legally mandated benefits, and maintaining a safe working environment. Franchisees should consult with legal and human resources professionals to ensure they are meeting all their obligations as an employer.