What is the requirement for medical employees and independent contractors of C3 Wellness Spa's Practice?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (A) Non-Physician Medical Personnel will be employees of Manager, and the cost of Manager, including but not limited to their salaries, benefits and associated payroll costs, will be borne by Manager and not passed on to Practice.
Manager may select for employment and terminate the employment of all Non-Physician Medical Personnel as Manager deems necessary or advisable, and may be responsible for the supervision, direction, training and assigning of duties of all Non-Physician Medical Personnel, as well as determining the rates of compensation for such personnel.
- (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.
- (3) Manager may provide assistance to Practice in recruiting and evaluating prospective physicians and Leased Personnel as employees or independent contractors of Practice.
Practice will make all decisions relating to hiring, training, managing, and termination of medical personnel.
- (4) Manager will comply and will ensure compliance by Practice with all applicable laws and regulations having to do with worker's compensation, social security, unemployment insurance, hours of labor, wages, working conditions, and other employer-employee related subjects in connection with all Leased Personnel.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the Practice, which refers to the medical services offered at the spa, has specific requirements regarding medical personnel. Non-physician medical personnel will be employees of the Manager, and their associated costs, including salaries and benefits, will be borne by the Manager, not the Practice. The Manager is responsible for selecting, employing, and terminating these personnel, as well as their supervision, training, and compensation rates. However, the Practice will provide supervision of these personnel, including on-site supervision and delegation of duties, consistent with state and federal laws and community standards. These personnel must also follow the Practice's instructions and policies.
C3 Wellness Spa indicates that the Practice and Manager can agree in writing for certain non-physician medical personnel to be directly employed by or contracted with the Practice. In this case, the Practice controls the selection, terms of employment, compensation, supervision, training, and duties of these employees or independent contractors. The Manager may also assist the Practice in recruiting and evaluating prospective physicians and leased personnel. However, the Practice retains the final decision-making authority regarding hiring, training, managing, and termination of all medical personnel.
C3 Wellness Spa also requires that the Manager ensures compliance with all applicable laws and regulations related to worker's compensation, social security, unemployment insurance, labor hours, wages, working conditions, and other employer-employee matters for all leased personnel. This ensures that the C3 Wellness Spa operates within legal and regulatory guidelines, protecting both the franchisee and the employees. Prospective franchisees should confirm with the franchisor the specific roles and responsibilities of the Manager versus the Practice to fully understand staffing and compliance obligations.