What must accompany the transfer of a Dermani Medspa franchise, regarding other franchise agreements?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
7.2. Transfer By You.
- 7.2.1. You understand and acknowledge that the rights and duties this Agreement creates are personal to you and that we have granted you the right to develop Franchised Businesses and manage dermani MEDSPA®s in reliance upon our perceptions of your individual or collective character, skill, aptitude, attitude, business ability, and financial capacity. Accordingly, none of the following may be transferred without our prior written approval: (i) this Agreement or any interest in this Agreement; (ii) any Franchise Agreement signed by you, your Owner(s), or any of your affiliates pursuant to this Agreement; (iii) any Franchised Business or any right to receive all or a portion of any Franchised Business's or dermani MEDSPA®'s profits or losses or capital appreciation; (iv) your lease(s), mortgage(s), or other agreement where each Franchised Business or dermani MEDSPA® is or will be located; (v) substantially all of the assets of the Franchised Business and dermani MEDSPA®; (vi) any ownership interest in you (regardless of its size); or (vii) any ownership interest in any of your owners. A transfer of the Franchised Business's ownership, possession, or control, or substantially all of its assets, may be made only with a transfer of this Agreement.
- 7.2.2. In this Agreement, the term "transfer" includes a voluntary or involuntary, direct or indirect, assignment, sale, gift, or other disposition. An assignment, sale, gift, or other disposition includes the following events:
- a) transfer of ownership of capital stock, a partnership or membership interest, or another form of ownership interest;
- b) merger or consolidation or issuance of additional securities or other forms of ownership interest;
- c) any sale of a security convertible to an ownership interest;
- d) transfer of an interest in you, this Agreement, any Franchise Agreement(s), the Franchised Business(es), or substantially all of your assets, or your owners in a divorce, insolvency, or entity dissolution proceeding or otherwise by operation of law; or
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, a transfer of the Franchised Business's ownership, possession, or control, or substantially all of its assets, may only occur with a transfer of the Franchise Agreement itself. Dermani Medspa emphasizes that the rights and duties created by the agreement are personal to the franchisee, and the franchisor has granted the right to develop Franchised Businesses and manage Dermani Medspas based on their perception of the franchisee's individual or collective character, skill, aptitude, attitude, business ability, and financial capacity.
This means that if a franchisee wishes to sell their Dermani Medspa business, they cannot simply transfer the assets or ownership without also transferring the underlying Franchise Agreement. This requirement ensures that Dermani Medspa maintains control over who operates its franchises and that the new operator meets the franchisor's standards.
The FDD specifies that the term "transfer" is broad, including both voluntary and involuntary assignments, sales, gifts, or other dispositions, whether direct or indirect. This encompasses various scenarios such as the transfer of stock ownership, partnership interests, mergers, consolidations, or even transfers occurring due to divorce, insolvency, or entity dissolution. This comprehensive definition highlights Dermani Medspa's intent to oversee any change in ownership or control of a franchise to protect its brand and system standards.