What administrative, operational, and non-professional services does the Manager provide to a Dermani Medspa practice, as detailed in Exhibit A?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Dermani Medspa's 2025 Franchise Disclosure Document, Exhibit A outlines the administrative services provided by the Manager to the Practice. These services encompass a broad range of responsibilities aimed at supporting the operational and business aspects of the Dermani Medspa location. These services are subject to limitations, conditions, and restrictions contained within the agreement and any further restrictions imposed by applicable law, including state corporate practice of medicine doctrines.
The Manager provides general administrative and supervisory support for the business operations, including secretarial services, office personnel, collection of client fees, and procurement of office and professional supplies and equipment. They also handle the management of electronic records, provide staff support for Practice Managers and committee meetings, maintain administrative records, and offer human resources and IT support. Additionally, the Manager is responsible for providing necessary office space, real estate management, and acquisition.
Furthermore, the Manager assists the Dermani Medspa practice in assessing the effectiveness and efficiency of its service delivery model. They also take charge of accounting and financial administrative services, including establishing and preparing annual budgets, establishing bank accounts in the Practice's name, endorsing checks, making fund transfers, and signing checks. The Manager also reconciles checks with bank statements monthly, prepares monthly balance sheets and income statements, and handles the timely deposit of capitation and other payments received by the Practice. However, the financial statements prepared are not audited statements, though the manager will cooperate with any annual audit the Practice obtains at its own cost.