For C3 Wellness Spa, can Non-Medical Personnel be independent contractors of the Manager?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
h 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 C3 Wellness Spa's 2024 Franchise Disclosure Document, Non-Medical Personnel can be independent contractors of the Manager. Specifically, the document states that Non-Medical Personnel will be directly employed by the Manager, but they can be either employees or independent contractors. The cost of the Manager, including salaries, benefits, and payroll costs, will be borne by the Manager. The Manager is responsible for selecting, employing, and terminating Non-Medical Personnel, as well as their supervision, direction, training, assignment of duties, and compensation rates.
However, the C3 Wellness Spa franchisee (referred to as "Practice" in the document) will supervise and direct the Non-Medical Personnel in their day-to-day duties. The Non-Medical Personnel are subject to the instructions, directions, and policies of the Practice. The Practice reimburses the Manager for the time spent by 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.
Furthermore, the Practice and Manager can agree in writing for certain Non-Medical Personnel providing services to be directly employed by or contracted with the Practice. In this case, these Non-Medical Personnel would be employees or independent contractors engaged by the Practice, and the Practice would determine and control the selection, terms of employment or engagement, compensation rates, supervision, direction, training, and assignment of duties. This arrangement provides flexibility in how Non-Medical Personnel are engaged, allowing for either direct employment/contracting by the Practice or through the Manager, depending on the specific agreement between the parties.