factual

Who are considered 'Leased Personnel' for the C3 Wellness Spa practice?

C3_Wellness_Spa Franchise · 2024 FDD

Answer from 2024 FDD Document

iting. The extent to which Manager attempts to collect such charges, the methods of collection and the amount of settlements with respect to disputed charges, and the determination of which charges are not collectible, will be determined by Manager. However, the fee schedule to determine the cost of such services will be determined solely by Practice.

(c) Personnel.

(1) Manager Personnel are staff employed and paid by Manager to perform management services on behalf of Manager for the benefit of Practice. Manager Personnel are controlled by Manager and generally are not a Practice Expense. However, if Manager Personnel perform services that are listed as Practice Expenses under Appendix A, or services requested by Practice that Manager and Practice have agreed will be treated as a Practice Expense, the applicable portion of Manager Personnel's time may be reimbursed by Practice as a Practice Expense.

(2) Leased Personnel.

  • (i) Except as otherwise provided in subsection (C), all Non-Medical Personnel (which does not include Practice Professionals) will be directly employed by Manager with Non-Medical Personnel being leased to the Practice as follows:
  • (A) Non-Medical Personnel will be employees or independent contractors of Manager, and the cost of Manager, including but not limited to their salaries, benefits and associated payroll costs, will be borne by Manager. Manager will select for employment and terminate the employment of all Non-Medical Personnel as Manager deems necessary or advisable, and will be responsible for the supervision, direction, training and assigning of duties of all Non-Medical Personnel, as well as determining the rates of compensation for such personnel.
  • (B) Non-Medical Personnel will perform their day to day duties at Practice and will be under the supervision and direction of Practice for those day to day duties. Non-Medical Personnel will be subject to the reasonable instructions, directions and policies of Practice in the performance of their duties. All time spent by Non-Medical Personnel performing day to day duties for,

on behalf of, or for the benefit of Practice will be reimbursable by Practice as a Practice Expense at the rates agreed upon by Practice and Manager. Non-Medical Personnel, to the extent required for Practice to direct their duties, would be co-employed by Practice.

  • (C) Practice and Manager may specifically agree in writing for certain Non-Medical Personnel providing any services for, on behalf of, or for the benefit of Practice to be directly employed by or contracted with Practice.

Source: Item 23 — RECEIPTS (FDD pages 59–293)

What This Means (2024 FDD)

According to the 2024 C3 Wellness Spa Franchise Disclosure Document, leased personnel are categorized into Non-Medical Personnel and Non-Physician Medical Personnel. Generally, these personnel are directly employed by a Manager and then leased to the C3 Wellness Spa practice. The Manager is responsible for their salaries, benefits, and associated payroll costs. The Manager also handles the selection, employment termination, supervision, direction, training, and assignment of duties for Non-Medical Personnel, including determining their compensation rates.

Non-Medical Personnel perform their day-to-day duties at the C3 Wellness Spa and are supervised by the Practice for these duties. They must follow the reasonable instructions, directions, and policies of the Practice. The Practice reimburses the Manager for the time spent by Non-Medical Personnel working for the Practice at agreed-upon rates, effectively making them co-employees to the extent required for directing their duties.

However, C3 Wellness Spa and the Manager can agree in writing for certain Non-Medical Personnel to be directly employed or contracted by the Practice. In such cases, these personnel would be employees or independent contractors of the Practice, with the Practice controlling their selection, terms of employment, compensation, supervision, training, and assignment of duties. For Non-Physician Medical Personnel, they are generally employed by the Manager and leased to the Practice, with their costs borne by the Manager and not passed on to the Practice.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.