What activities are prohibited under the non-competition covenants during the term of the Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| to you and without restriction. | ||
| k. “Transfer” by you – defined | Section 12.2 | Includes any sale, assignment, gift, conveyance, pledge, mortgage or other encumbrance or disposition of any interest in the Franchise Agreement, the Franchised Business or you (if you are not a natural person). |
| l. Our approval of transfer by you | Section 12.3 | You may not transfer the Franchise Agreement without our prior written consent. We will not unreasonably withhold our consent. Our consent to a transfer is not a waiver of any claims we have against you. |
| m. Conditions for our approval of transfer | Section 12.3 | Your full compliance with the Franchise Agreement; our approval of transferee; you are current in fees owed to us; transferee signs then-current franchise agreement; payment of transfer fee; release signed; you comply with non-competition covenants; all obligations to us satisfied; and others. |
| n. Our right of first | Section 12.6 | We have the right of first refusal if you determine to sell |
| refusal to acquire your | or transfer your interest in the franchisee, the Franchise | |
| business | Agreement or the Franchised Business. | |
| o. Our option to purchase your business | Section 15.5 | Upon termination or expiration of the Franchise Agreement, we have the right to purchase all or a portion of the assets of your Franchised Business at their fair market value. |
| p. Your death or disability | Section 12.5 | Your estate must transfer your interest in the Franchised Business to a third party we approve within 12 months after death or disability. Your estate must appoint a manager within 30 days of death or disability and an Operating Principal within 90 days after death or disability |
| q. Non-competition covenants during the term of the franchise | Article 7 | Includes a prohibition on engaging in Competitive Business, including any medspa, medical care center, or business that offers or provides laser hair removal, skin rejuvenation, chemical peels, body contouring/skin tightening, microneedling, dermaplaning, or injections for a medical center, medical care practice management business, or any other product or service or management service that is similar to the services and products or servicesauthor |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–58)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, during the term of the franchise agreement, franchisees are prohibited from engaging in any Competitive Business. This includes operating or being involved with any medspa, medical care center, or business that offers similar services.
Specifically, the restricted services include laser hair removal, skin rejuvenation, chemical peels, body contouring/skin tightening, microneedling, dermaplaning, or injections. This also extends to involvement with a medical center, medical care practice management business, or any other product or service or management service that is similar to the services and products authorized to be offered or sold under the Marks and the System.
This non-competition covenant ensures that franchisees focus solely on developing and operating their Dermani Medspa franchise and do not divert resources or expertise to competing ventures. It protects Dermani Medspa's brand and market position by preventing franchisees from leveraging the franchisor's system and brand recognition to benefit other businesses during the franchise term. Prospective franchisees should carefully consider these restrictions and ensure they do not have conflicting business interests before entering into a franchise agreement.