What actions can Dermani Medspa take if a franchisee's other franchise agreement is terminated?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
If any of such rights, options, arrangements, or areas are terminated or modified, such action will be without prejudice to our right to terminate this Agreement, and we will have the right to retain all Development Fees paid by you, and/or to terminate any other rights or arrangements under this
Agreement at any time thereafter for the same default or as a result of any additional defaults of the terms of this Agreement.
- 8.5. Post-Termination Rights. Upon termination or expiration of this Agreement, you will have no right to establish or operate a Franchised Business or manage any dermani MEDSPA® for which a Franchise Agreement has not been executed by us at the time of termination.
- 8.6. Cross-Defaults. No default under this Area Development Agreement shall constitute a default under any Franchise Agreement between the parties hereto.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, if a franchisee has multiple agreements with Dermani Medspa and one of those agreements is terminated or modified, Dermani Medspa's right to terminate the other agreements is not prejudiced. Dermani Medspa retains the right to terminate the remaining agreements.
Additionally, Dermani Medspa has the right to retain all Development Fees paid by the franchisee. This means that even if an agreement is terminated, the franchisee may not be entitled to a refund of any fees already paid to Dermani Medspa.
Furthermore, upon termination or expiration of the Area Development Agreement, the franchisee loses the right to establish or operate a Franchised Business or manage any Dermani Medspa for which a Franchise Agreement has not been executed by Dermani Medspa at the time of termination. However, a default under the Area Development Agreement does not automatically constitute a default under any Franchise Agreement between the parties.