At a C3 Wellness Spa, who determines the rates of compensation for Non-Medical Personnel leased to the Practice?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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.
Such Non-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 Manager typically determines the rates of compensation for Non-Medical Personnel who are leased to the Practice. The Manager directly employs these personnel, covering their salaries, benefits, and associated payroll costs. This arrangement means the C3 Wellness Spa franchisee does not directly handle the employment or compensation of these staff members, except under specific written agreements.
However, there's an exception: the Practice and Manager can agree in writing for certain Non-Medical Personnel to be directly employed or contracted by the Practice. In such cases, the Practice (the franchisee) would determine and control the terms of employment or engagement, including the rates of compensation, supervision, direction, training, and assignment of duties. This provides some flexibility for the franchisee to directly manage specific personnel if both parties agree.
This dual arrangement offers both advantages and potential complexities. The standard leasing arrangement simplifies staffing for the franchisee, as the Manager handles employment responsibilities. However, franchisees need to carefully consider the terms of the agreement with the Manager to ensure the agreed-upon rates for reimbursable personnel time are favorable. The option to directly employ staff, when agreed upon, allows for greater control but also increases administrative burden on the franchisee.