Does Crave have the authority to discipline or terminate a franchisee's employees?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no authority to control, either directly or indirectly, the essential terms and conditions of employment of your employees. You acknowledge and agree that you, in your sole and absolute discretion, shall determine all such essential terms and conditions of employment, which are defined in the Manual. You specifically agree that any training we provide for your employees is geared to impart to those employees, with your ultimate authority, the various procedures, protocols, systems, and operations of a Crave outlet and in no fashion reflects any employment relationship between us and such employees. Finally, should it ever be asserted that we are the employer, joint employer or co-employer of any of your employees in any private or government investigation, action, proceeding, arbitration or other setting, you irrevocably agree to assist us in defending said allegation, including (if necessary) appearing at any venue requested by us to testify on our behalf (and, as may be necessary, submitting yourself to depositions, other appearances and/or preparing affidavits dismissive of any allegation that we are the employer, joint employer or co-employer of any of your employees). If ever it is asserted that we are the employer, joint employer or co-employer of any of your employees in any private or government investigation, action, proceeding, arbitration or other setting, you irrevocably agrees to assist us in defending said allegation, appearing at any venue requested by us to testify on our behalf, participate in depositions, other appearances or preparing affidavits rejecting any assertion that we are the employer, joint employer or co-employer of any of your employees.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave does not have the authority to control the terms and conditions of a franchisee's employees' employment. The franchisee has the sole discretion in determining the essential terms and conditions of employment for their employees, as defined in Crave's manual.
Crave's training for the franchisee's employees is designed to impart the procedures, protocols, systems, and operations of a Crave outlet, and does not reflect any employment relationship between Crave and the franchisee's employees. This means that while Crave may provide training materials and operational guidelines, the franchisee is responsible for managing their staff and making employment-related decisions.
The Franchise Agreement states that the franchisee agrees to assist Crave in defending against any assertion that Crave is the employer, joint employer, or co-employer of the franchisee's employees. This includes providing testimony and preparing affidavits to dismiss any such allegations. This clause protects Crave from potential legal issues related to employment practices at the franchise level, reinforcing the independent contractor relationship between Crave and its franchisees.