Can Desi District Franchise Group set minimum qualifications for employees at a Desi District franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Qualifications.
Desi District Franchise Group may set minimum qualifications for categories of employees employed by Franchisee.
- (e) Sole Responsibility.
Franchisee is solely responsible for the terms and conditions of employment of all of its personnel, including recruiting, hiring, training, scheduling, supervising, compensation, and termination.
Franchisee is solely responsible for all actions of its personnel.
Franchisee and Desi District Franchise Group are not joint employers, and no employee of Franchisee will be an agent or employee of Desi District Franchise Group.
Within seven days of Desi District Franchise Group's request, Franchisee and each of its employees will sign an acknowledgment form stating that Franchisee alone (and not Desi District Franchise Group) is the employee's sole employer.
Franchisee will use its legal name on all documents with its employees and independent contractors, including, but not limited to, employment applications, time cards, pay checks, and employment and independent contractor agreements, and Franchisee will not use the Marks on any of these documents.
- 7.6 Post-Opening Training. Desi District Franchise Group may at any time require that the Principal Executive and/or any other employees complete training programs, in any format and in any location determined by Desi District Franchise Group.
Desi District Franchise Group may charge a reasonable fee for any training programs.
Desi District Franchise Group may require Franchisee to provide training programs to its employees.
If a training program is held at a location which requires travel by the Principal Executive or any other employee, then Franchisee shall pay all travel, living and other expenses.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group has the authority to set minimum qualifications for different categories of employees working at a Desi District franchise. However, the franchisee retains sole responsibility for the terms and conditions of employment, including recruiting, hiring, training, scheduling, supervising, compensation, and termination of their personnel. The franchisee is also solely responsible for all actions of their personnel.
This means that while Desi District can mandate certain qualifications, such as requiring specific certifications or experience levels for certain roles, the franchisee is the actual employer and manages the day-to-day employment relationship. The FDD clarifies that Desi District Franchise Group and the franchisee are not joint employers, and the franchisee's employees are not considered agents or employees of Desi District Franchise Group.
To ensure this distinction is clear, Desi District Franchise Group may require the franchisee and their employees to sign an acknowledgment form confirming that the franchisee alone is the employer. The franchisee must also use their legal name on all employment-related documents and cannot use Desi District's trademarks on these documents. This separation aims to protect Desi District from potential liabilities related to the franchisee's employees.
In addition to setting minimum qualifications, Desi District Franchise Group may also require the Principal Executive and other employees to complete training programs, potentially charging a reasonable fee for these programs. The franchisee is responsible for covering all travel, living, and other expenses associated with such training. This highlights the importance of understanding both the required qualifications and ongoing training obligations for employees when considering a Desi District franchise.