Who is responsible for the supervision and training of leased Non-Medical Personnel at a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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 the 2024 C3 Wellness Spa Franchise Disclosure Document, the Manager is generally responsible for the supervision, direction, and training of leased Non-Medical Personnel. Specifically, the Manager selects, employs, and can terminate Non-Medical Personnel, bearing the costs of their salaries, benefits, and associated payroll expenses. The Manager also determines their compensation rates. This arrangement applies unless the Practice (the franchisee) and the Manager agree in writing that certain Non-Medical Personnel will be directly employed or contracted by the Practice, in which case the Practice assumes these responsibilities.
However, the Practice does have a role in the day-to-day duties of Non-Medical Personnel. These personnel operate under the supervision and direction of the Practice for their daily tasks and must adhere to the Practice's instructions, directions, and policies. The Practice reimburses the Manager for the time spent by these personnel on duties benefiting the Practice, classified as a Practice Expense, at rates agreed upon between the Practice and the Manager. This arrangement effectively makes the Non-Medical Personnel co-employees to the extent that the Practice directs their duties.
This division of responsibilities means that a C3 Wellness Spa franchisee needs to coordinate closely with the Manager regarding Non-Medical Personnel. While the Manager handles employment and compensation, the franchisee oversees their daily work and ensures they comply with the spa's operational standards. The franchisee also has the option to directly employ or contract specific Non-Medical Personnel if agreed upon with the Manager, which would shift the full responsibility for these individuals to the franchisee. This dual-management structure requires clear communication and agreements to ensure smooth operations and compliance.