For C3 Wellness Spa, is the Manager responsible for assigning duties to all Non-Medical Personnel?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 23: RECEIPTS]
(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.
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 is generally responsible for assigning duties to all Non-Medical Personnel, but there are exceptions. Specifically, the Manager 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. This arrangement applies when the Non-Medical Personnel are directly employed by the Manager and leased to the Practice. The cost of the Manager, including salaries, benefits, and payroll costs, will be borne by the Manager.
However, the Practice (likely the franchisee) also has a role in supervising and directing the Non-Medical Personnel in their day-to-day duties. The Non-Medical Personnel are subject to the reasonable instructions, directions, and policies of the Practice in performing these duties. This implies a co-employment relationship where the Practice has input into the daily tasks and responsibilities of the Non-Medical Personnel.
There is an exception 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 determine and control the selection, terms of employment, compensation rates, supervision, direction, training, and assignment of duties for these specific personnel. This exception provides flexibility in how personnel are managed, depending on the specific agreement between the Practice and the Manager.