What administrative, operational, and non-professional services does the Manager provide to a Dermani Medspa Practice under Article III, Section 3.01?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.01. Administrative Services. Consistent with applicable federal, state and local laws, Practice hereby engages Manager on an exclusive basis to provide administrative, operational and non-professional services to Practice. Manager's duties include, but are not limited to, providing the services set forth on attached Exhibit A (collectively, the "Administrative Services"). Exhibit A may be amended or substituted from time to time, as mutually agreed by the Parties. The amended Exhibit A shall state the date upon which all changes are effective.
EXHIBIT A
ADMINISTRATIVE SERVICES
Subject to the limitations, conditions and restrictions contained in the Agreement and any further restrictions imposed by applicable law (including state corporate practice of medicine doctrines), Manager shall provide the following services:
- (a) General Administrative Services. Manager shall provide general business administration and supervision for the business operations of Practice, which shall include secretarial and other office personnel support services, collection of client fees, procurement of office and professional supplies, procurement of any equipment, management of electronic records, staff support for Practice Managers and committee meetings of Practice, administrative record keeping, other similar administrative services required in the day-to-day operation of Practice, human resources support, IT systems and support, provision of necessary office space, and real estate management and acquisition.
- (b) Enhancement of Service Delivery. Manager shall assist Practice regarding the assessment of the effects and efficiencies of Practice's evolving service delivery model.
- (c) Accounting and Financial Administrative Services. With respect to accounting and financial management services, Manager shall:
- (i) have exclusive authority with respect to the establishment and preparation of annual budgets for Practice, which budgets shall reflect in reasonable detail anticipated revenues and expenses;
- (ii) in consultation with Practice, whose consent shall not unreasonably be withheld, establish bank accounts in Practice's name ("Accounts") for the deposit of all sums received by Practice. Practice agrees that Manager shall have the authority to endorse all checks made payable to Practice and deposit checks and funds received by Practice in the Accounts. Manager shall further have the authority to make transfers of funds to the Accounts and further, Manager shall have the authority to sign checks and stop payment on any checks drawn on the Accounts;
- (iii) reconcile checks written with bank statements on a monthly basis;
- (iv) prepare balance sheets and income statements on a monthly basis during the term of this Agreement. Such financial statements shall not be audited statements. Manager agrees to cooperate with any annual audit Practice obtains at Practice's sole cost and expense by an independent public accounting firm selected by Manager;
- (v) receive and deposit on a timely basis capitation and other payments received by Practice;
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, Article III, Section 3.01 states that the Manager is engaged to provide administrative, operational, and non-professional services to the Practice, consistent with applicable federal, state, and local laws, on an exclusive basis. The specific duties of the Manager are detailed in Exhibit A, which lists the Administrative Services. This exhibit can be amended or substituted with mutual agreement between the parties, with the amended version stating the effective date of any changes.
Exhibit A outlines the administrative services provided by the Manager, including general business administration and supervision, secretarial and office personnel support, collection of client fees, procurement of office and professional supplies and equipment, management of electronic records, staff support for Practice Managers and committee meetings, administrative record keeping, human resources support, IT systems and support, office space, and real estate management and acquisition. The Manager also assists with assessing the effects and efficiencies of the Practice's service delivery model.
Regarding accounting and financial administrative services, the Manager has exclusive authority to establish and prepare annual budgets for the Practice, in reasonable detail, reflecting anticipated revenues and expenses. The Manager also establishes bank accounts in the Practice's name for depositing all sums received, with the authority to endorse checks, deposit funds, make transfers, sign checks, and stop payments. Additionally, the Manager reconciles checks with bank statements monthly, prepares monthly balance sheets and income statements, and manages the timely deposit of capitation and other payments. These services are subject to limitations, conditions, and restrictions contained in the agreement and any further restrictions imposed by applicable law, including state corporate practice of medicine doctrines.