Does Dermani Medspa account for the System Marketing Fund separately from other funds?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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 (as defined in this Item 11 below), 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.
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 the Franchise Agreement.
We do not owe any fiduciary obligation to you for administering the System Marketing Fund or any other reason.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–43)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the System Marketing Fund is accounted for separately from other funds. Dermani Medspa will not use the System Marketing Fund for any of its general operating expenses. However, the fund may be used to cover administrative costs, such as managing advertising, marketing, and promotional programs, as well as paying outside suppliers and the salaries and benefits of personnel who manage the fund.
Additionally, the System Marketing Fund can be used for other administrative costs, travel expenses of personnel on fund business, meeting costs, overhead related to fund business, and expenses incurred in administering the fund and its programs. Dermani Medspa may also use the fund to cover the costs of collecting the System Marketing Fee, including legal and accounting fees. If a portion of the fund is used to develop and maintain websites, these websites may include a section related to the franchise opportunity, but the funds are not primarily used for franchise sales solicitation.
The System Marketing Fund is not considered an asset of Dermani Medspa. While 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 the funds only for the purposes outlined in the Franchise Agreement. However, Dermani Medspa does not owe any fiduciary obligation to franchisees for administering the System Marketing Fund.