According to the Dermani Medspa FDD, what is NOT implied by Dermani Medspa's consent to a transfer?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) The transferor shall remain liable for all of the obligations to us in connection with the Franchised Business incurred prior to the effective date of the transfer and shall execute any and all instruments reasonably requested by us to evidence such liability;
- (h) The transferee (i) must sign our then current form of franchise agreement and related documents, any and all of the provisions of which may differ materially
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
Based on the 2025 Dermani Medspa Franchise Disclosure Document, Dermani Medspa maintains specific conditions that must be met before they approve a franchise transfer. Dermani Medspa will not unreasonably withhold consent to a transfer if the franchisee is in full compliance with the agreement, policies, and system standards, and the transfer meets all requirements. However, Dermani Medspa's consent to a transfer does not imply a release of the transferor's prior obligations.
Specifically, the transferor (the original franchisee) remains liable for all obligations to Dermani Medspa in connection with the franchised business incurred before the transfer's effective date. The transferor must also execute any instruments reasonably requested by Dermani Medspa to evidence this liability. This means that even after a transfer is approved and completed, the original franchisee could still be responsible for debts, fees, or other liabilities that arose during their time operating the Dermani Medspa franchise.
Furthermore, the transferee (the new franchisee) must sign Dermani Medspa's then-current form of franchise agreement and related documents. The FDD notes that the provisions in this new agreement may differ materially from the original agreement. This protects Dermani Medspa by ensuring the new franchisee is bound by the most up-to-date terms and conditions, which may not be identical to those the original franchisee agreed to. A prospective franchisee should carefully consider these conditions and seek legal counsel to fully understand their obligations both before and after a transfer.