Regarding personnel, what responsibilities does the Craters & Freighters franchisee have?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
r any purpose whatsoever, and nothing in any aspect of the System or the Marks in any way shifts any employee or employment related responsibility from Franchisee to Franchisor. Franchisee agrees to be solely responsible for all employment decisions and, in accordance with Section 6.10 of this Agreement, to comply with all state, federal, and local hiring laws and functions of the Franchised Business, including without limitation, those related to hiring, firing, training, wage and hour requirements, compensation, promotion, record-keeping, supervision, discipline, and workplace safety of employees, paid or unpaid, full or part-time.
- 6.12 Compliance with Lease. Franchisee must comply with both the Lease and any additional leasehold covenants and regulations of the building in which the Premises is located. In the event the landlord of the Premises terminates the Lease due to Franchisee's default of such Lease, such termination of the Lease will also constitute a material breach of this Agreement by Franchisee, so long as Franchisor verifies Franchisee's alleged default(s) of such Lease.
- 6.13 Compliance with System Standards.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the franchisee is solely responsible for all employment decisions related to the franchised business. This includes compliance with all state, federal, and local hiring laws.
The franchisee's responsibilities extend to all functions of the business related to employees, whether paid or unpaid, full-time or part-time. These functions include hiring, firing, training, setting wage and hour requirements, determining compensation, managing promotions, maintaining records, providing supervision, administering discipline, and ensuring workplace safety.
Craters & Freighters emphasizes that while it provides training, support, and guidance to protect the brand and assist in business operations, the franchisee retains control over day-to-day operations. This specifically includes the franchisee's sole responsibility for hiring, wages, compensation (including benefits), training, supervision, and termination of employees, as well as all other employment and employee-related matters. This means the franchisee has significant autonomy in managing their workforce but must also bear the full responsibility for compliance and employee-related issues.