The staff of the franchise store are recruited by the franchise store, and their labor relations belong to the franchise store. Labor contracts should be signed with franchisees, and social security should also be paid by franchisees.

If the franchisor fails to sign a contract with the employee, it can be stipulated in Article 82 of the Labor Contract Law that if the employer fails to sign a written labor contract with the employee for more than one month but less than one year from the date of employment, it shall pay the employee twice the monthly salary.