factual

What agreement must a Dermani Medspa franchisee enter into if a waiver of the management agreement is granted?

Dermani_Medspa Franchise · 2025 FDD

Answer from 2025 FDD Document

In certain states, it may be permissible under the existing laws that may be applicable to medical practices and/or medical centers for one entity to both manage and operate the dermani MEDSPA®, including hiring any medical and professional personnel and providing medical services to clients at the dermani MEDSPA®. If you determine that the laws that would apply to a dermani MEDSPA® in your state would permit you to do so, you may request that we waive certain requirements of the Franchise Agreement related to separating the operation of the medical aspects of the dermani MEDSPA® from the management aspects. In particular, depending upon the applicable laws and circumstances, you may not be required to enter into a management agreement with a PC, or be restricted from directly employing Affiliated Physicians. Any waiver or any modification of our standards would be subject to compliance with all applicable laws and regulations. If we agree to a waiver, you must enter into our "Waiver of Management Agreement" (which is Exhibit L to this Disclosure Document). Under the Waiver of Management Agreement, you agree that, instead of entering into the Management Agreement with a separate PC, you will (a) operate the dermani MEDSPA®, including performing all responsibilities and obligations of the "PC" under the Management Agreement, and (b) manage the dermani MEDSPA® as required in the Franchise Agreement and by performing all the responsibilities and obligations of the "Company" under the Management Agreement. As part of this Waiver of Management Agreement, you must represent that you have consulted with an attorney with experience in medical and health care laws and regulations in your state, and she or he has advised you that you may operate the Franchised Business

and the dermani MEDSPA® as one entity. If you qualify to enter into the Waiver of Management Agreement, we will make the final determination whether we will permit the waiver or not.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)

What This Means (2025 FDD)

According to the 2025 Dermani Medspa Franchise Disclosure Document, if a franchisee is in a state that allows one entity to manage and operate the medspa, including providing medical services, they may request a waiver of certain requirements related to separating the medical and management aspects of the business. If Dermani Medspa agrees to this waiver, the franchisee must enter into the "Waiver of Management Agreement," which is Exhibit L to the FDD.

Under this agreement, instead of having a separate professional corporation (PC) manage the medical aspects, the franchisee agrees to operate the Dermani Medspa and fulfill all responsibilities of both the PC and the company under the standard Management Agreement. This includes managing the medspa as required in the Franchise Agreement and performing all obligations typically assigned to both the PC and the company.

As part of the Waiver of Management Agreement, the franchisee must confirm they have consulted with an attorney experienced in medical and healthcare laws in their state and have been advised that operating the franchised business as one entity is permissible. However, Dermani Medspa retains the final decision on whether to grant the waiver, even if the franchisee meets the initial qualifications.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.