Does the Lees Famous Recipe franchisor influence personnel decisions made by 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 the 2025 Lees Famous Recipe Franchise Disclosure Document, franchisees are independently responsible for all personnel decisions related to their restaurant. Lees Famous Recipe explicitly states that franchisees are solely responsible for employment decisions.
This means the franchisee has complete control over hiring, firing, training, compliance with wage and hour laws, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees. Lees Famous Recipe emphasizes that these decisions should be made without any influence or advice from them, and such actions will not be considered decisions made by the franchisor.
Furthermore, the franchise agreement specifies that Lees Famous Recipe will not be deemed a joint employer with the franchisee for any reason. The franchisee is obligated to indemnify Lees Famous Recipe for any costs, losses, or damages resulting from the actions or omissions of the franchisee or their employees, including any findings of joint employer status. This reinforces the independent contractor relationship and protects Lees Famous Recipe from liabilities related to the franchisee's employees.