How will Dermani Medspa account for the System Marketing Fund?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
vices to the Medspas operated under the System. The System Marketing Fund may also be used to provide rebates or reimbursements to franchisees for local expenditures on products, services, or improvements, approved in advance by us, which products, services, or improvements we shall have the right to determine will promote general public awareness and favorable support for the System.
9.2.3. We will account for the System Marketing Fund separately from our other funds and monies and not use the System Marketing Fund for any of our general operating expenses. However, we may use the System Marketing Fund to pay administrative costs of the System Marketing Fund including managing the advertising, marketing, and promotional programs and payment of outside suppliers or vendors utilized by the System Marketing Fund, and we may use the System Marketing Fund to pay the reasonable salaries and benefits of personnel (including our personnel) who manage and administer the System Marketing Fund. We may use the System Marketing Fund to pay for other administrative costs, travel expenses of personnel while they are on System Marketing Fund business, meeting costs, overhead concerning System Marketing Fund business, and other expenses that we incur in activities reasonably related to administering or directing the System Marketing Fund and its programs. We may use money from the System Marketing Fund for collecting the System Marketing Fee (including attorneys', auditors' and accountants' fees and other expenses incurred in connection with collecting any System Marketing Fee). If we use a portion of the System Marketing Fund toward the cost to develop and maintain one or more Websites, any of them may have a section relating to our franchise opportunity, and all advertising and promotional materials may reflect the availability of dermani MEDSPA® franchises. Otherwise, we do not use System Marketing Fund monies for advertising that is principally a solicitation for the sale of franchises.
9.2.4. The System Marketing Fund will not be our asset. Although the System Marketing Fund is not a trust, we will hold all System Marketing Fund contributions for the benefit of the System, the dermani MEDSPA® brand, and the contributors, and use contributions only for the purposes described in this Section 9.2. We do not owe any fiduciary obligation to you for administering the System Marketing Fund or any other reason. The System Marketing Fund may spend in any fiscal year more or less than the total System Marketing Fund contributions in that year, borrow from us or others (paying reasonable interest) to cover deficits, or invest any surplus for future use. We will use all interest earned on System Marketing Fund contributions to pay costs before using the System Marketing Fund's other assets.
9.2.5. We will prepare an annual, unaudited statement of System Marketing Fund collections and expenses. The statement is available for your review upon written request, one hundred twenty (120) days after our fiscal yearend. We may have the System Marketing Fund audited annually, at the System Marketing Fund's expense, by an independent certified public accountant. We may incorporate the System Marketing Fund or operate it through a separate entity whenever we deem appropriate. The successor entity will have all of the rights and duties specified in this Section.
9.2.6. Although we may use the System Marketing Fund, or portions of the monies in the System Marketing Fund, to create, develop, use and/or place advertising and promotional marketing materials and programs, and we may try to engage in brand enhancement activities that will benefit all Franchised Businesses and Medspas, we cannot and do not represent or ensure that System Marketing Fund expenditures will be made in or affect any specific geographic area, or will be proportionate or equivalent to System Marketing Fund contributions by Franchised Businesses operating in that geographic area. We do not guarantee or assure that any dermani MEDSPA® franchised business will benefit directly or in proportion to its System Marketing Fund contribution from the brand enhancement activities of the System Marketing Fund or the development of advertising and marketing materials or the placement of advertising and marketing.
9.2.7. We have the right to use collection agents and institute legal proceedings to collect System Marketing Fund contributions at the System Marketing Fund'
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, Dermani Medspa will account for the System Marketing Fund separately from its other funds and monies and will not use it for general operating expenses. Dermani Medspa may use the System Marketing Fund to pay administrative costs, including managing advertising, marketing, and promotional programs, payments to outside suppliers or vendors, and reasonable salaries and benefits of personnel who manage the fund. Other allowable uses include administrative costs, travel expenses of personnel on System Marketing Fund business, meeting costs, overhead, and expenses related to administering the fund and its programs. Dermani Medspa can also use the fund to collect System Marketing Fees, including attorney, auditor, and accountant fees.
The System Marketing Fund will not be an asset of Dermani Medspa. Although it is not a trust, Dermani Medspa will hold all contributions for the benefit of the System, the Dermani Medspa brand, and the contributors, using contributions only for the specified purposes. Dermani Medspa does not owe any fiduciary obligation for administering the fund. The System Marketing Fund may spend more or less than the total contributions in a fiscal year, borrow funds (paying reasonable interest), or invest any surplus for future use. Interest earned on System Marketing Fund contributions will be used to pay costs before using the fund's other assets.
Dermani Medspa will prepare an annual, unaudited statement of System Marketing Fund collections and expenses, available for review upon written request 120 days after the fiscal year-end. Dermani Medspa may have the fund audited annually at the System Marketing Fund's expense by an independent certified public accountant. Dermani Medspa may incorporate the System Marketing Fund or operate it through a separate entity, with the successor entity having all specified rights and duties. While Dermani Medspa may use the fund to create advertising and promotional materials, it does not guarantee that expenditures will be made in or affect any specific geographic area or be proportionate to contributions by franchisees in that area, nor does it assure that any Dermani Medspa franchised business will benefit directly or in proportion to its contribution.