For C3 Wellness Spa, are Non-Physician Medical Personnel considered employees of the Manager?

According to C3 Wellness Spa's 2024 Franchise Disclosure Document, Non-Physician Medical Personnel are generally employees of the Manager, not the Practice. The Manager is responsible for their salaries, benefits, and associated payroll costs, which are not passed on to the Practice. The Manager also handles the selection, employment termination, supervision, direction, training, and assignment of duties for these personnel, including determining their compensation rates. This arrangement is part of a leasing agreement where the Non-Physician Medical Personnel are leased to the Practice. However, the Practice provides on-site supervision and delegates duties consistent with legal and community standards, and the personnel are subject to the Practice's instructions and policies. The Practice reimburses the Manager for the time spent by these personnel at agreed-upon rates. In certain situations, the Non-Physician Medical Personnel may be co-employed by the Practice to the extent required for the Practice to direct their duties.

However, there are exceptions to this general rule. C3 Wellness Spa allows for specific written agreements between the Practice and the Manager, where certain Non-Physician Medical Personnel providing services for the Practice can be directly employed by or contracted with the Practice. In such cases, these personnel would be employees or independent contractors of the Practice, and the Practice would control their selection, employment terms, compensation rates, supervision, direction, training, and assignment of duties. This flexibility allows for tailored staffing arrangements based on the specific needs and agreements between the Practice and the Manager.

For Non-Medical Personnel, the arrangement is similar. They are generally directly employed by the Manager and leased to the Practice, with the Manager bearing the costs and handling employment matters. The Practice supervises their day-to-day duties and reimburses the Manager for their time. However, as with Non-Physician Medical Personnel, written agreements can be made for the Practice to directly employ or contract with Non-Medical Personnel. This dual structure provides flexibility but also requires careful management and clear agreements to avoid confusion and ensure compliance with labor laws.