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Business Policies

2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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Code of Conduct Violation, Handling and Reporting

Policy Updated: September, 2012
PURPOSE
To ensure that all clinics understand how to handle inappropriate conduct allegations when they arise,
handle it as effectively as possible, and report it to the appropriate parties in a timely manner via the
Massage Envy Incident Report Form.
RELATED FORM(S)
Incident Report Form (electronic version found on the MeIntranet)
Code of Conduct and Zero Tolerance Policy
Pre-Employment and Background Screening Policy
Terminating an Employee in Millennium Policy
Inappropriate Conduct Incident Handling Flow Charts

POLICY
1. During their initial orientation with new Franchisees, Regional Developers (RDs) should discuss
the topic of inappropriate conduct and how to handle any reports of inappropriate conduct
within the clinic. The Franchisee is then responsible for training his/her managers and staff
members from that point forward.
2. Regional Developers should briefly review the location, contents and purpose of the Incident
Report Form with the Franchisee and explain the circumstances that would necessitate the
completion of an Incident Report. In the event that the Franchisee files an Incident Report, the
Regional Developer must be actively engaged in both the communication and the resolution of
the event.
3. Franchisees and managers must take proactive steps to minimize inappropriate conduct in their
clinics and educate their staff members accordingly. (See Code of Conduct and Zero Tolerance
Policy)
4. Franchisees are responsible for completing and submitting an Incident Report any time there is
a reportable event within the clinic. A reportable event is any natural or human-caused event
that offers the possibility of:
legal risk
personal injury
damage to the Massage Envy brand
damage to the clinics reputation in its
community
any serious customer complaint
a violation of the law or a violation of the clinics
code of conduct or business practices
damage to property
5. The Franchisee must use the electronic Incident Report Form that is posted on
http://www.meintranet.com. Once completed, the Franchisee must email the Form to both the
Regional Developer and the Corporate Legal Department. Note: Since some Incident Report
events develop over time, an initial version of an Incident Report should be immediately sent to
the RD and to Corporate. If necessary, depending upon the complexity of the issue, a final
version of the Incident Report may be required when all issues of the event have been resolved.
Business Policies
2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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6. If state and local regulations require so, state authorities may need to be notified.
PROCEDURE
Reactive Plan - In the event of an allegation

WHEN A GUEST ACCUSES A THERAPIST/ESTHETICIAN
The immediate goal is to address the member/guests concerns about the clinics commitment to a safe
and secure environment and to retain him/her as a valued client. The member/guest should understand
that you will completely and objectively address the concern at once and not feel the need to file a claim
with the police or go to any other third party, such as the media or state licensing board.

If the guest accuses a therapist/esthetician in person report

Step 1 The employee, who receives the notification of an inappropriate conduct, will notify the clinics
Point of Contact (Franchisee, CA, ACA) and that person will address the issue immediately with the
complaining guest/member.

Step 2 Conduct your investigation in a fair and objective manner (be neutral). Create and retain
written records of your conversations with the therapist/esthetician, other witnesses and
member/guest regarding the allegations/incident. The purpose of your investigation is to determine if
the guest/member and their version of the incident seems credible, and if so, whether the acts
complained of indicate that your clinics code of conduct has been violated.


A) Interview the Guest or Member
The Designated Point of Contact should respond professionally
- Escort the guest/member to a private room, offer them some water
- Bring another clinic employee with you as a witness (same gender as the
guest/member)

Once in a private room with the guest/member:
- Allow the guest/member to vent/share their story, and recover, etc.
- Do not admit/deny/promise anything (only promise that you will conduct a
thorough investigation and take the appropriate actions based upon your
findings)
- Document the conversation

Try to have the guest/member meet for a face-to-face interview once they have had a chance to
recover (possibly the next day)
- Ask them to explain what happened step-by-step if possible
- Observe their demeanor as a step to determine credibility of allegation
- Document your findings



Business Policies
2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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B) Interview the Therapist/Esthetician
o Contact the therapist/esthetician in question to conduct an interview regarding the
guest/members allegations
o Have another clinic employee with you as a witness (same gender as the
therapist/esthetician)
o Be sure to take notes of the conversation
o Suspend the therapist/esthetician and remove them from the schedule pending
investigation results. Until you determine what happened, the therapist/esthetician
accused of inappropriate touch cannot be allowed to provide further massage/facial
services. If the investigation determines that the allegations are correct, proceed to Step
5.
O It is recommended that you take a zero tolerance approach to dealing with violations
of your clinics code of conduct. This means that any employee that your investigation
indicates has violated the code of conduct should receive either a written warning and
corrective retraining or a termination of employment, depending upon the severity of
the allegations and the circumstances of the incident. In the event that you elect to
terminate an employee for cause, you must enter the appropriate notation in the
Millennium system according to the policy entitled Terminating an Employee in
Millennium.

Step 3 - After speaking with the guest/member and therapist, submit an initial copy of the Incident
Report form to both your RD and to the Corporate Legal Department electronically. It is not necessary to
attach any other documentation to the Incident Report Form.

Step 4 - If the complaint appears valid:
- If required in your jurisdiction, notify local authorities (e.g., licensing board)
- Advise the therapist they should notify their insurance company of the allegations
- Notify your insurance carrier (usually within 30 days to preserve your right to defense
coverage if you believe that this incident might become a legal claim)
- Notify your attorney if you feel it necessary

Step 5 Complete your investigation
- If the allegations against the therapist/esthetician are found to be credible, either issue a
formal warning or terminate the therapists employment with Massage Envy (for example,
if the draping protocol was not followed, and you have retrained the employee, proper
documentation should be filed to note the breach in the Code of Conduct)
If terminated, you must also restrict the employee in Millennium (See
Terminating an Employee in Millennium policy)
- Submit the completed Incident Report form with the additional information and outcome of
your findings to both your RD and the Corporate Legal Department electronically.
- Include a copy of the completed Incident Report form and any associated notes in both the
employees file and the guest/members file



Business Policies
2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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If the guest accuses a therapist/esthetician via Phone call from Guest/Member

Step 1 The employee who answers the phone and receives the notification of inappropriate conduct
will ask the Guest/Member to hold on the phone while they immediately notify the clinics Point of
Contact (Franchisee, CA, ACA) and that person will address the issue immediately with the complaining
guest/member.

The POC will then take over the phone call at that point.

Step 2 Conduct your investigation in a fair and objective manner (be neutral). Create and retain
written records of your conversations with the therapist/esthetician, other witnesses and
member/guest regarding the allegations/incident. The purpose of your investigation is to determine if
the guest/member and their version of the incident seems credible, and if so, whether the acts
complained of indicate that your clinics Code of Conduct has been violated.

A) Interview the Guest or Member over the phone or in person (in person is preferable)
The Designated Point of Contact should respond professionally
o Try to have the Guest or Member meet for a face-to-face conversation so that you can
observe their demeanor as a step to determining the credibility of the allegations
o The POC should take the call in a private quiet room/area
o The POC will have an employee witness (same gender as the guest/member) present
with them and put the call on speaker phone, if allowable by state/local/federal
regulations
o Ask them to explain what happened step-by-step if possible
o Observe their demeanor as a step to determine credibility of allegation
o Document your findings
o Do not admit/deny/promise anything (only promise that you will conduct a thorough
investigation and take the appropriate actions based upon your findings)

B) Interview the Therapist
o Contact the therapist in question to conduct an interview regarding the guest/members
allegations
o Have another clinic employee with you as a witness (same gender as the
therapist/esthetician)
o Be sure to take notes of the conversation
o Suspend the therapist/esthetician and remove them from the schedule pending
investigation results. Until you determine what happened, the therapist/esthetician
accused of inappropriate touch cannot be allowed to provide further massage/facial
services. If the investigation determines that the allegations are correct, proceed to Step
5.
O It is recommended that you take a zero tolerance approach to dealing with violations
of your clinics code of conduct. This means that any employee that your investigation
indicates has violated the code of conduct should receive either a written warning and
Business Policies
2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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corrective retraining or a termination of employment, depending upon the severity of
the allegations and the circumstances of the incident. In the event that you elect to
terminate an employee for cause, you must enter the appropriate notation in the
Millennium system according to the policy entitled Terminating an Employee in
Millennium.

Step 3 - After speaking with the guest/member and therapist, submit an initial copy of the Incident
Report form to both your RD and to the Corporate Legal Department electronically. It is not necessary to
attach any other documentation to the Incident Report Form.

Step 4 - If the complaint appears valid:
- If required in your jurisdiction, notify local authorities (e.g., licensing board)
- Advise the therapist they should notify their insurance company of the allegations
- Notify your insurance carrier (usually within 30 days to preserve your right to defense
coverage if you believe that this incident might become a legal claim)
- Notify your attorney if you feel it necessary

Step 5 Complete your investigation
- If the allegations against the therapist/esthetician are found to be credible, either issue a
formal warning or terminate the therapists employment with Massage Envy (for example,
if the draping protocol was not followed, and you have retrained the employee, proper
documentation should be filed to note the breach in the Code of Conduct)
If terminated, you must also restrict the employee in Millennium (See
Terminating an Employee in Millennium policy)
- Submit the completed Incident Report form with the additional information and outcome of
your findings to both your RD and the Corporate Legal Department electronically
- Include a copy of the completed Incident Report form and any associated notes in both the
employees file and the guest/members file



















Business Policies
2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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If the guest accuses a therapist/esthetician via e-mail and/or Feedback Survey

Step 1 The employee who receives the e-mail and/or feedback survey will immediately notify the
clinics Point of Contact (Franchisee, CA, ACA) and that person will address the issue immediately with
the complaining guest/member.

The POC will then review the e-mail/survey. If the guest/member requests not to be contacted continue
to Step 2, part B.

Step 2 Conduct your investigation in a fair and objective manner (be neutral). Create and retain
written records of your conversations with the therapist/esthetician, other witnesses and
member/guest regarding the allegations/incident. The purpose of your investigation is to determine if
the guest/member and their version of the incident seems credible, and if so, whether the acts
complained of indicate that your clinics Code of Conduct has been violated.

A) Interview the Guest or Member via phone or in person (in person is preferable)
The Designated Point of Contact should respond professionally
o Try to have the Guest or Member meet for a face-to-face conversation so that you can
observe their demeanor as a step to determining the credibility of the allegations
o The POC should take the call/meet in a private quiet room/area
o The POC will have an employee witness present (same gender as the guest/member)
o Ask them to explain what happened step-by-step if possible
o Observe their demeanor as a step to determine credibility of allegation
o Document your findings
o Do not admit/deny/promise anything (only promise that you will conduct a thorough
investigation and take the appropriate actions based upon your findings)

B) Interview the Therapist
o Contact the therapist in question to conduct an interview regarding the guest/members
allegations
o Have another clinic employee with you as a witness (same gender as the
therapist/esthetician)
o Be sure to take notes of the conversation
o Suspend the therapist/esthetician and remove them from the schedule pending
investigation results. Until you determine what happened, the therapist/esthetician
accused of inappropriate touch cannot be allowed to provide further massage/facial
services. If the investigation determines that the allegations are correct, proceed to Step
5.
O It is recommended that you take a zero tolerance approach to dealing with violations
of your clinics code of conduct. This means that any employee that your investigation
indicates has violated the code of conduct should receive either a written warning and
corrective retraining or a termination of employment, depending upon the severity of
the allegations and the circumstances of the incident. In the event that you elect to
Business Policies
2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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terminate an employee for cause, you must enter the appropriate notation in the
Millennium system according to the policy entitled Terminating an Employee in
Millennium.

Step 3 - After speaking with the guest/member and therapist, submit an initial copy of the Incident
Report form to both your RD and to the Corporate Legal Department electronically. It is not necessary to
attach any other documentation to the Incident Report Form.
Step 4 - If the complaint appears valid:
- If required in your jurisdiction, notify local authorities (e.g, licensing board)
- Advise the therapist they should notify their insurance company of the allegations
- Notify your insurance carrier (usually within 30 days to preserve your right to defense
coverage if you believe that this incident might become a legal claim)
- Notify your attorney if you feel it necessary

Step 5 Complete your investigation
- If the allegations against the therapist/esthetician are found to be credible, either issue a
formal warning or terminate the therapists employment with Massage Envy (for example,
if the draping protocol was not followed, and you have retrained the employee, proper
documentation should be filed to note the breach in the Code of Conduct)
If terminated, you must also restrict the employee in Millennium (See
Terminating an Employee in Millennium policy)
- Submit the completed Incident Report form with the additional information and outcome of
your findings to both your RD and the Corporate Legal Department electronically
- Include a copy of the completed Incident Report form and any associated notes in both the
employees file and the guest/members file






















Business Policies
2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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If the guest accuses a therapist/esthetician via local authorities

Step 1 The employee who receives the contact from local authorities will defer the matter to the
clinics Point of Contact (Franchisee, CA, ACA) and that person will address the issue immediately with
the complaining guest/member.

The POC will then:
o If the police are involved, you must fully cooperate with their investigation. Refer to the Crisis
Communication Guide.
o If asked by police or governmental agency to comment:
<<<see procedure area under the media section>>>
o Gather the incident information from the local authorities, ask for a copy of their incident report
and/or incident report number so the report can be retrieved at a later date
o search for the guest/member in Millennium to verify:
the guest/member was at your clinic on the alleged date in question
the therapist was on duty on the date in question
any notes that may be in the guest/members client file
o Fill out an incident report and submit to your RD and Corporate Legal Department electronically
o Begin the internal investigation. DO NOT contact the Guest/Member.

Step 2 Conduct your investigation in a fair and objective manner (be neutral). Create and retain
written records of your conversations with the therapist/esthetician, other witnesses and
member/guest regarding the allegations/incident. The purpose of your investigation is to determine if
the guest/member and their version of the incident seems credible, and if so, whether the acts
complained of indicate that your clinics Code of Conduct has been violated.

A) Interview the Therapist
o Contact the therapist in question to conduct an interview regarding the guest/members
allegations
o Have another clinic employee with you as a witness (same gender as the
therapist/esthetician)
o Be sure to take notes of the conversation
o Suspend the therapist/esthetician and remove them from the schedule pending
investigation results. Until you determine what happened, the therapist/esthetician
accused of inappropriate touch cannot be allowed to provide further massage/facial
services. If the investigation determines that the allegations are correct, proceed to Step
5.
O It is recommended that you take a zero tolerance approach to dealing with violations
of your clinics code of conduct. This means that any employee that your investigation
indicates has violated the code of conduct should receive either a written warning and
corrective retraining or a termination of employment, depending upon the severity of
the allegations and the circumstances of the incident. In the event that you elect to
terminate an employee for cause, you must enter the appropriate notation in the
Millennium system according to the policy entitled Terminating an Employee in
Millennium.
Business Policies
2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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Step 3 - After speaking with the guest/member and therapist, submit an initial copy of the Incident
Report form to both your RD and to the Corporate Legal Department electronically. It is not necessary to
attach any other documentation to the Incident Report Form.

Step 4 - If the complaint appears valid:
- If required in your jurisdiction, notify local authorities (e.g., licensing board)
- Advise the therapist they should notify their insurance company of the allegations
- Notify your insurance carrier (usually within 30 days to preserve your right to defense
coverage if you believe that this incident might become a legal claim)
- Notify your attorney if you feel it necessary

Step 5 Complete your investigation
- If the allegations against the therapist/esthetician are found to be credible, either issue a
formal warning or terminate the therapists employment with Massage Envy (for example,
if the draping protocol was not followed, and you have retrained the employee, proper
documentation should be filed to note the breach in the Code of Conduct)
If terminated, you must also restrict the employee in Millennium (See
Terminating an Employee in Millennium policy)
- Submit the completed Incident Report form with the additional information and outcome of
your findings to both your RD and the Corporate Legal Department electronically
- Include a copy of the completed Incident Report form and any associated notes in both the
employees file and the guest/members file
























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2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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WHEN A THERAPIST/ESTHETICIAN ACCUSES A GUEST/MEMBER
The immediate goal is to address the member/guest about the inappropriate behavior and explain the
clinics commitment to a safe and secure environment. The therapist/esthetician should feel that you are
addressing their concern by handling the situation as effectively as possible.

If the Guest/Member demonstrates Inappropriate Behavior - During the Session

Therapist/Esthetician - Chooses not to end the session
Occasionally a guest or member may say things (e.g., comments about religion, race, or of sexual nature)
during the session that may make a therapist/esthetician uncomfortable. In addition, actions of the
guest/member may offend the therapist/esthetician. Sometimes these comments/actions are made
because the guest/member is uncomfortable themselves. Though some words/actions may be
unintentional (e.g., a guest/member falls asleep and their arm falls and touches a therapist)
therapists/estheticians should understand that ending a session is at their discretion.

It is the responsibility of a manager/franchisee to train all employees about inappropriate conduct from
a guest/member. It is important to know when training that there are differences between inappropriate
actions and unintentional improper words/phrases/actions.

If at any time a therapist/esthetician feels uncomfortable because of a guest/members improper
actions or words he/she may:
o Immediately point out the improper behavior to the guest/member
If the guest/member does not correct the behavior or repeats the same improper
behavior the therapist/esthetician can choose to immediately end the session (leaving
the treatment room) and proceed to Therapist/Esthetician Ends the Session for
instructions.
o If the therapist/esthetician did not stop of the massage/facial but does not wish to provide
services to this guest/member in the future, he/she must immediately contact a member of
management

Once management has been notified by a therapist/esthetician of a guest/members inappropriate
actions, they must:
o If the therapist/esthetician did not stop of the massage/facial but does not wish to provide
services to this guest/member in the future, management will put a note in the guest/members
file (in Millennium) so that he/she is not scheduled with that therapist/esthetician in the future
o Fill out an incident report form and submit it to the RD and the Corporate Legal Department
electronically. It is not necessary to attach any other documentation to the Incident Report
Form.








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2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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Therapist/Esthetician - Ends the Session
If at any time a therapist/esthetician feels the guest/member acted inappropriately or they feel
threatened because of a guest/members actions, he/she must:
o Immediately point out the inappropriate behavior for the guest/member and immediately end
the session and advise the guest/member to get dressed and wait in the room for the manager
o Leave the treatment room and report the behavior to a member of management
o Wait in the break room and do not discuss the incident with other employees

Once management has been notified by a therapist/esthetician of a guest/members inappropriate
actions, they must:
o Immediately address the guest/member about their behavior in a private room/area with a
witness present (same gender as the guest/member)
o Escorts the guest/member to the front lobby and have them pay
o Explain to the guest/member that they are not allowed back in the clinic (if behavior warrants
exclusion from Massage Envy)
Restrict the guest/members account in Millennium
Contact local authorities only if the situation warrants this; if state or local laws require
you to do so, or if instructed to do so by Franchisee or RD (always refer to your clinics
own individual crisis preventions and management plan)
o After the guest/member leaves, complete an incident report form and submit it to the RD and
the Corporate Legal Department electronically. It is not necessary to attach any other
documentation to the Incident Report Form.


If the Guest/Member demonstrates Inappropriate Behavior In the Clinic

If at any time an employee feels uncomfortable because of a guest/members improper actions or
words, he/she may:
o Immediately point out the improper behavior to the guest/member
If the guest/member does not correct the behavior or repeats the same improper
behavior the employee must immediately contact a member of management

Once management has been notified by an employee of a guest/members inappropriate actions, they
must:
o Immediately addresses the guest/member about their behavior in a private room/area with a
witness present
If the guest/member still does not correct the behavior or repeats the same improper
behavior management may ask the guest/member to leave the property
- If inappropriate behavior has taken place prior to a service being performed,
having the guest/member pay for their service is at the discretion of the clinic
manager/franchisee
o Put a note in the guest/members file (in Millennium)
Only if warranted
- Notify the guest/member that they are not allowed back in the clinic, and
restrict the guest/members account in Millennium (if behavior warrants
exclusion from Massage Envy)
Business Policies
2012, Massage Envy Franchising, LLC. All rights reserved. Operations Manual. v9-12
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- Contact local authorities only if the situation warrants this; if state or local laws
require you to do so, or if instructed to do so by Franchisee or RD (always refer
to your clinics own individual crisis preventions and management plan)
o After the guest/member leaves complete an incident report form and submit it to the RD and
the Corporate Legal Department electronically. It is not necessary to attach any other
documentation to the Incident Report Form.

PROCEDURES FOR THE MEDIA
The immediate goal is to avoid the media, interviews, photography or video to protect the confidentiality
of the guest/member and therapist/esthetician, as well as to protect the Massage Envy brand.

o Refer to the Crisis Communication Guide and contact Corp Director of Communications for
media statement.
I. No interviews, on or off camera. A written response to media inquiries from Corporate
is best
II. No in-clinic still or video photos/coverage
III. No interviewing of staff persons or members/guests
IV. Call property manager if it is necessary to remove media groups
o Keep in mind that any statement made to the media can be misconstrued; therefore, you
should refrain from deviating from the written statement. Prior to providing any response,
contact the Corporate Director of Communications. Avoid any verbal communication with the
Media.
o Always keep in mind that any footage shot is the property of the media outlet and may be used
at a later date in a negative/positive light toward the brand.
o If asked by police, governmental agency or media to comment, your spokesperson can issue the
following written statement:
Massage Envy is a company of high integrity and is committed to providing a
safe, professional, therapeutic environment for our customers and employees.
We take all customer complaints very seriously and have a zero tolerance policy
on inappropriate behavior.
o You should not admit, deny or make any commitments beyond this statement at this initial
stage. However, you are committed to conduct your investigation, cooperate with a
governmental investigation, and take appropriate action as determined by the indisputable facts
and conclusions that come out of that investigation.