Does the Dermani Medspa agreement allow the Manager to be considered an employee of the Practice, or vice versa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
ou understand and agree that you are and will be an independent contractor under this Agreement. Nothing in this Agreement may be interpreted as creating a partnership, joint venture, agency, employment or fiduciary relationship of any kind. Your employees are not our employees. Neither you nor any of your employees whose compensation you pay may in any way, directly or by implication, shall be considered our employee for any purpose, regardless of inclusion in mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. We do not, and will not, have the power to hire or terminate the employment of your employees. You expressly agree, and will never claim otherwise, that our authority under this Agreement does not directly or indirectly vest in us the power to influence the employment terms of any such employee.
- 10.1.2. At all times during the term of this Agreement, you shall hold yourself out to the public as an independent contractor operating pursuant to this Agreement. You shall take such action as may be necessary to do so, including, without limitation, exhibiting a notice of that fact in a conspicuous place in your offices, the content of which we reserve the right to specify.
- 10.1.3. You hereby irrevocably affirm, attest, and covenant your understanding that your employees are employed exclusively by you and in no fashion are any such employee employed, jointly employed or co-employed by us.
- 10.1.4. We and you may not make any express or implied agreements, warranties, guarantees, or representations, or incur any debt, in the name or on behalf of the other or represent that our respective relationship is other than that of franchisor and developer. We will not be obligated for any damages to any person or property directly or indirectly arising out of the Development Schedule or the business you conduct under this Agreement.
11. COMPLIANCE WITH LAWS
- 11.1. Compliance with Laws. You shall comply with all federal, state, and local laws, rules, and regulations, including, without limitation, employment, labor, and wage and hour laws, tax laws, local operating regulations, medical, and corporate practice of medicine laws and regulations. You shall timely obtain and maintain any and all permits, certificates, or licenses necessary for the full and proper conduct of the Franchised Businesses and dermani MEDSPA®s contemplated under this Agreement.
- 11.2. Notification of Claims.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, the franchisee is considered an independent contractor and must present themselves as such. Dermani Medspa franchisees are responsible for their own employees, and Dermani Medspa is not liable for damages arising from the franchisee's business operations. The agreement explicitly states that the franchisee's employees are employed exclusively by the franchisee and not by Dermani Medspa.
The Dermani Medspa agreement states that the franchisee, referred to as the Manager, is engaged by the Practice to provide administrative, operational, and non-professional services. The Manager is responsible for recruiting, hiring, supervising, training, disciplining, and terminating Manager Personnel. The Practice retains discretion over decisions relating to Practitioners.
This arrangement ensures that Dermani Medspa maintains a franchisor-franchisee relationship, avoiding potential legal or financial liabilities associated with direct employment. The franchisee's role is to manage the administrative and operational aspects of the Medspa, while licensed professionals handle the medical services. This structure is common in franchise systems to clearly delineate responsibilities and maintain the franchisor's control over brand standards and operational procedures without being directly involved in the franchisee's employment practices.