For C3 Wellness Spa, is the Practice responsible for the on-site supervision of Non-Physician Medical Personnel?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (B) Consistent with this Agreement, Practice will provide supervision of the Non-Physician Medical Personnel.
Such supervision will include on-site supervisions and delegation of duties consistent with state and federal law, regulations, certification, and generally accepted community standards.
Non-Physician 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-Physician Medical Personnel performing duties for or on behalf of Practice will be reimbursable by Practice as a Practice Expense at the rates agreed upon by Practice and Manager.
Non-Physician 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-Physician Medical Personnel providing any services for or on behalf of Practice to be directly employed by or contracted with Practice.
Such Non-Physician 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 Practice, which refers to the franchisee's medical practice, does have responsibilities regarding the supervision of Non-Physician Medical Personnel. While the Manager (a separate entity) employs these personnel, the Practice is responsible for their on-site supervision. This supervision includes delegating duties in accordance with state and federal laws, regulations, certifications, and generally accepted community standards.
This arrangement means that while the Manager handles employment and compensation, the C3 Wellness Spa franchisee (the Practice) directs the daily activities and ensures compliance with relevant standards. The Non-Physician Medical Personnel are also subject to the Practice's instructions, directions, and policies. The Practice reimburses the Manager for the time these personnel spend performing duties for the Practice, categorized as a Practice Expense, at rates agreed upon by both parties.
Furthermore, the document indicates that the Non-Physician Medical Personnel could be considered co-employed by the Practice to the extent that the Practice needs to direct their duties. There is also an option for the Practice and Manager to agree in writing for certain Non-Physician Medical Personnel to be directly employed by or contracted with the Practice. In such cases, the Practice would control the selection, terms of employment, compensation, supervision, training, and assignment of duties for those specific personnel. This co-employment or direct employment would likely shift more of the legal and regulatory burden onto the franchisee, so it is important to understand the implications of this arrangement.