Is the cost of Non-Physician Medical Personnel passed on to the Practice for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (A) Non-Physician Medical Personnel will be employees of Manager, and the cost of Manager, including but not limited to their salaries, benefits and associated payroll costs, will be borne by Manager and not passed on to Practice.
Manager may select for employment and terminate the employment of all Non-Physician Medical Personnel as Manager deems necessary or advisable, and may be responsible for the supervision, direction, training and assigning of duties of all Non-Physician Medical Personnel, as well as determining the rates of compensation for such personnel.
- (B) Consistent with this Agreement, Practice will provide supervision of the Non-Physician Medical Personnel.
Such supervision will include on-site supervisions and delegation of duties consistent with state and federal law, regulations, certification, and generally accepted community standards.
Non-Physician 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-Physician Medical Personnel performing duties for or on behalf of Practice will be reimbursable by Practice as a Practice Expense at the rates agreed upon by Practice and Manager.
Non-Physician 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-Physician Medical Personnel providing any services for or on behalf of Practice to be directly employed by or contracted with Practice.
Such Non-Physician Medical Personnel would be employees or independent contractors employed or engaged by Practice, and the selection and terms of employment or engagement, including the rates of compensation, supervision, direction, training and assignment of duties would be determined and controlled by Practice.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the cost of Non-Physician Medical Personnel is generally not passed on to the Practice. The document states that these personnel will be employees of the Manager, and the Manager will bear the costs, including salaries, benefits, and associated payroll expenses. This arrangement is designed to keep these specific personnel costs separate from the Practice's expenses. However, there are exceptions where costs could be passed on to the Practice.
Specifically, the Practice will reimburse the Manager for the time Non-Physician Medical Personnel spend performing duties for or on behalf of the Practice. These reimbursements are considered a Practice Expense, with rates agreed upon by both the Practice and the Manager. Additionally, if the Practice and Manager agree in writing for certain Non-Physician Medical Personnel to be directly employed by or contracted with the Practice, the Practice would then be responsible for their compensation and related costs.
In summary, while the standard arrangement is for the Manager to cover the costs of Non-Physician Medical Personnel, the Practice may incur expenses related to their services through reimbursements for time spent and direct employment or contracting under specific written agreements. This distinction is important for prospective franchisees to understand, as it affects their financial planning and operational management.