For C3 Wellness Spa, who directly employs Non-Medical Personnel, except as provided in subsection (C)?
C3_Wellness_Spa Franchise · 2024 FDDAnswer 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.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, a Manager directly employs Non-Medical Personnel, except as provided in subsection (C). These Non-Medical Personnel do not include Practice Professionals. The Non-Medical Personnel are then leased to the Practice. The Manager handles employment matters, including hiring, firing, compensation, supervision, direction, training, and assigning duties. The Manager also bears the costs of salaries, benefits, and associated payroll costs for these personnel.
However, the Non-Medical Personnel perform their day-to-day duties at the Practice and are under the Practice's supervision and direction for those duties. The Non-Medical Personnel must follow the Practice's reasonable instructions, directions, and policies. The Practice reimburses the Manager for the time spent by the Non-Medical Personnel performing duties for the Practice at rates agreed upon by both parties. To the extent required for the Practice to direct their duties, the Non-Medical Personnel would be co-employed by the Practice.
There is an exception in subsection (C) where the Practice and Manager may agree in writing for certain Non-Medical Personnel to be directly employed by or contracted with the Practice. In this case, the Practice would handle the employment or engagement terms, including compensation, supervision, direction, training, and assignment of duties.