What activities are Dermani Medspa members prohibited from doing in a Competitive Business during the Post-Term Period?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Member covenants and agrees that during the Post-Term Period (defined below), Member will not, either directly indirectly, own, maintain, operate, engage in, manage, franchise or license, or have any direct or indirect controlling or non-controlling interest as an owner (whether of record, beneficially, or otherwise) or be or perform services as a partner, director, manager, employee, consultant, representative, or agent in any Competitive Business, that is, or is intended to be, located within the Development Area, or within a five (5) mile radius of the boarder of the Development Area or any other dermani MEDSPA® operating at the time.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, during the Post-Term Period, a member is restricted from certain activities related to a Competitive Business. Specifically, the member cannot directly or indirectly own, maintain, operate, engage in, manage, franchise, or license a Competitive Business. This restriction also includes having any direct or indirect controlling or non-controlling ownership interest, whether recorded, beneficial, or otherwise.
Additionally, the member is prohibited from being or performing services as a partner, director, manager, employee, consultant, representative, or agent in any Competitive Business. These restrictions apply if the Competitive Business is located, or intended to be located, within the Development Area. The restrictions also extend to businesses within a five-mile radius of the border of the Development Area or any other Dermani Medspa operating at the time.
These covenants are in place to protect Dermani Medspa's interests and prevent former members from using the knowledge and resources gained during their association with the franchise to directly compete against it within a specific geographic area after the agreement ends. This type of restriction is common in franchising to safeguard the brand and its established market presence.