How does Dermani Medspa account for repairs and maintenance expenses related to furniture and equipment?

According to Dermani Medspa's 2025 Franchise Disclosure Document, the company expenses repairs and maintenance as they are incurred. This accounting practice means that instead of capitalizing these costs and depreciating them over the life of the asset, Dermani Medspa recognizes the full expense in the period it occurs.

For a Dermani Medspa franchisee, this implies that the costs of fixing or maintaining furniture and equipment will be fully deductible in the year they are paid. This can provide a more immediate tax benefit compared to capitalization and depreciation. However, it also means that larger, infrequent repair expenses could significantly impact profitability in a given year.

This approach is fairly common for smaller, routine repairs in many industries, as it simplifies accounting and reduces the administrative burden of tracking depreciation schedules for minor assets. Franchisees should budget accordingly for potential repair and maintenance costs, understanding that these expenses will be directly reflected in their profit and loss statement for the relevant period.