Who is responsible for employment decisions at a Lees Famous Recipe Restaurant?
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, the franchisee is solely responsible for all employment decisions at their restaurant. This includes, but is not limited to, hiring, firing, training, compliance with wage and hour requirements, creating personnel policies, scheduling, providing benefits, recordkeeping, supervision, and employee discipline. This responsibility remains with the franchisee regardless of any advice they may receive from Lees Famous Recipe.
This means that as a Lees Famous Recipe franchisee, you have complete control over your staff but also bear the full responsibility for managing them in accordance with all applicable laws and regulations. Lees Famous Recipe explicitly states that all personnel decisions will be made by the franchisee without influence or advice from them, and such decisions will not be considered actions of Lees Famous Recipe.
Lees Famous Recipe emphasizes that they will not be deemed a joint employer with the franchisee for any reason. To further protect themselves, the franchise agreement stipulates that the franchisee will fully 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 underscores the importance of the franchisee's role in managing their employees effectively and legally.
While the franchisee has autonomy over employment decisions, Lees Famous Recipe does retain control over certain aspects of the restaurant's operations that affect employees. For example, Lees Famous Recipe mandates that employees wear only approved uniforms and dictates the qualifications, dress, general appearance, and demeanor of restaurant employees. Therefore, franchisees must balance their independent employment decisions with the need to adhere to Lees Famous Recipe's brand standards and operational requirements.