Does Dermani Medspa allow franchisees to rely on representations or guarantees regarding potential volume, sales, income, or profits?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
As you have reviewed the financial performance representations in Item 19 of the Disclosure Document, do you understand that: a.
Item 19 contains only historical data from certain franchised and/or affiliate-owned dermani MEDSPA®s, and are not a promise, assurance or guaranty of future results of your Franchised Business; b. your results are likely to differ from the historical results reported; c. your results as a start-up business and Franchised Business are likely to be different than existing dermani MEDSPA®s; and d. you have had ample opportunity to review Item 19 with a lawyer, accountant and/or other advisor of your choosing.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees should understand that Item 19 contains only historical data from certain franchised and/or affiliate-owned Dermani Medspa locations. This data is not a promise, assurance, or guarantee of future results for a franchisee's business. The FDD emphasizes that a franchisee's results are likely to differ from the historical results reported and that results as a start-up business are likely to be different than existing Dermani Medspa locations.
This means that while Dermani Medspa may provide some financial performance representations, these are based on past performance and should not be interpreted as a guarantee of future success. Prospective franchisees should not rely solely on this data when making their investment decision. It is typical in the franchise industry for franchisors to provide some level of financial information, but it almost always comes with a disclaimer that past performance is not indicative of future results.
The FDD also advises that prospective franchisees have ample opportunity to review Item 19 with a lawyer, accountant, and/or other advisor of their choosing. This is a standard recommendation in franchising, as it is crucial for potential franchisees to conduct their own due diligence and seek professional advice before investing in a franchise. By consulting with experts, franchisees can better understand the potential risks and rewards associated with the Dermani Medspa franchise opportunity.
In summary, while Dermani Medspa provides historical financial data, it explicitly states that this data is not a guarantee of future performance. Prospective franchisees are encouraged to conduct thorough due diligence, consult with advisors, and understand that their individual results may vary significantly.