Will the Lees Famous Recipe franchisor be deemed a joint employer with the franchisee?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You are solely responsible for all employment decisions and functions of the Restaurant including, without limitation, those related to hiring, firing, training, compliance with wage and hour requirements, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees, regardless of whether you receive advice from us on these subjects.
You acknowledge and agree that all personnel decisions, including hiring, firing, disciplining, compensation, benefits, and scheduling, will be made by you, without any influence or advice from us, and such decisions and actions will not be, nor be deemed to be, a decision or action of ours.
Further, it is the intention of the parties to this Agreement that we will not be deemed a joint employer with you for any reason.
If we incur any cost, loss, or damage as a result of any actions or your omissions of or the omissions of your employees, including any that relate to any party making a finding of any joint employer status, you will fully indemnify us for such loss.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the franchise agreement specifies that the franchisee is solely responsible for all employment decisions related to the restaurant. These decisions include hiring, firing, training, compliance with wage and hour laws, personnel policies, scheduling, benefits, recordkeeping, supervision, and employee discipline. This responsibility remains with the franchisee regardless of any advice received from the franchisor on these subjects.
The franchise agreement explicitly states that all personnel decisions, including hiring, firing, disciplining, compensation, benefits, and scheduling, are to be made by the franchisee without influence or advice from the franchisor. The agreement emphasizes that these decisions and actions will not be considered decisions or actions of the franchisor.
Furthermore, the franchise agreement includes a clear statement that it is the intention of both parties that the franchisor will not be deemed a joint employer with the franchisee for any reason. The franchisee agrees to fully indemnify the franchisor for any costs, losses, or damages resulting from actions or omissions of the franchisee or their employees, including those related to any finding of joint employer status. This provision aims to protect the franchisor from liability related to the franchisee's employment practices.