Who is responsible for the supervision and training of leased Non-Physician Medical Personnel at a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
(ii) Except as otherwise provided in subsection (C), all Non-Physician Medical Personnel will be directly employed by Manager with Non-Physician Medical Personnel being leased to the Practice as follows:
(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.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the responsibility for supervising and training leased Non-Physician Medical Personnel is divided between the Manager and the Practice (the franchisee's spa). Generally, the Manager directly employs the Non-Physician Medical Personnel and is responsible for their employment terms, including selection, termination, compensation, and initially assigning duties. The Manager may also be responsible for the supervision, direction, and training of these personnel. The cost of the Manager, including salaries and benefits, is borne by the Manager and not passed on to the Practice.
However, the Practice provides on-site supervision of the Non-Physician Medical Personnel, including the delegation of duties, ensuring compliance with state and federal laws, regulations, certifications, and generally accepted community standards. The Non-Physician Medical Personnel are also subject to the reasonable instructions, directions, and policies of the Practice in performing their duties. The Practice reimburses the Manager for the time spent by these 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-Physician Medical Personnel would be co-employed by the Practice.
There is an exception where the Practice and Manager may specifically 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, direction, training, and assignment of duties for these personnel. This division of responsibility highlights the importance of a clear agreement between the Manager and the Practice to ensure effective and compliant operation of the C3 Wellness Spa.