Who is responsible for hiring, wages, and termination of employees at a Craters & Freighters franchise?
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 their Craters & Freighters franchise. This includes hiring, firing, training, wage and hour requirements, compensation, promotion, record-keeping, supervision, discipline, and workplace safety of employees, whether paid or unpaid, full-time or part-time.
This means that as a Craters & Freighters franchisee, you have complete control over your employees. You are responsible for ensuring that your business complies with all state, federal, and local labor laws. Craters & Freighters's training, support, and guidance are intended to protect the brand and assist in the operation of the franchised business, but not to control the franchisee's decisions regarding employees.
This level of autonomy is common in franchising, where franchisees are typically considered independent business owners. However, it also means that the franchisee bears the full responsibility and risk associated with employment-related issues. Franchisees should consult with legal and HR professionals to ensure they are in compliance with all applicable laws and regulations.