What is Dermani Medspa's acknowledgement regarding the potential difference between estimated and actual financial results?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
As you have reviewed the financial performance representations in Item 19 of the Disclosure Document, do you understand that: a.
Item 19 contains only historical data from certain franchised and/or affiliate-owned dermani MEDSPA®s, and are not a promise, assurance or guaranty of future results of your Franchised Business; b. your results are likely to differ from the historical results reported; c. your results as a start-up business and Franchised Business are likely to be different than existing dermani MEDSPA®s; and d. you have had ample opportunity to review Item 19 with a lawyer, accountant and/or other advisor of your choosing.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Item 23 requires franchisees to acknowledge that the historical financial data presented in Item 19 is not a guarantee of future results. Prospective franchisees must understand that their actual financial outcomes may differ from those historical results. This difference can arise because the franchisee is operating a start-up business, which typically performs differently than established Dermani Medspa locations.
Dermani Medspa emphasizes the importance of prospective franchisees consulting with legal, accounting, and other advisors to thoroughly review Item 19. This consultation is intended to ensure that franchisees fully understand the financial performance representations and their potential implications.
This acknowledgement serves to protect Dermani Medspa from liability should a franchisee's financial performance not meet the historical benchmarks. It also highlights the inherent risks and uncertainties involved in starting a new franchise, encouraging franchisees to conduct thorough due diligence and seek expert advice before investing.