Is the Manager allowed to bill C3 Wellness Spa patients on behalf of the Practice?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Billing, Collections. Subject to Practice's oversight and ultimate authority, Manager will be responsible, for and on behalf of Practice, as its agent, for billing and collecting the charges made with respect to all medical services provided by Practice at the Practice unless otherwise agreed in writing. 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.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the Manager has the authority to handle billing and collections for the Practice, acting as its agent. This means the Manager is responsible for billing patients and collecting payments for medical services provided by the Practice, unless there is a written agreement stating otherwise.
However, the Practice retains ultimate authority and oversight over these billing and collection activities. While the Manager determines the methods of collection, the extent of collection efforts, and settlement amounts for disputed charges, the fee schedule itself is determined solely by the Practice.
This arrangement implies that while the Manager handles the day-to-day billing operations, the Practice maintains control over pricing and has the final say in significant decisions related to billing and collections. This could be beneficial for a franchisee as it allows them to focus on other aspects of the business while still maintaining control over financial matters.