Is Dermani Medspa's approval required for a transfer of the Franchise Agreement?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
A. Franchise Agreement
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| to you and without restriction. | ||
| k. “Transfer” by you – defined | Section 12.2 | Includes any sale, assignment, gift, conveyance, pledge, mortgage or other encumbrance or disposition of any interest in the Franchise Agreement, the Franchised Business or you (if you are not a natural person). |
| l. Our approval of transfer by you | Section 12.3 | You may not transfer the Franchise Agreement without our prior written consent. We will not unreasonably withhold our consent. Our consent to a transfer is not a waiver of any claims we have against you. |
| m. Conditions for our approval of transfer | Section 12.3 | Your full compliance with the Franchise Agreement; our approval of transferee; you are current in fees owed to us; transferee signs then-current franchise agreement; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–58)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa's prior written consent is required to transfer the Franchise Agreement. Specifically, Section 12.3 of the Franchise Agreement states that franchisees "may not transfer the Franchise Agreement without our prior written consent." However, Dermani Medspa states that it will not unreasonably withhold its consent.
For a Dermani Medspa franchisee, this means that if they decide to sell their franchise, they cannot do so without first getting approval from Dermani Medspa. This is a fairly standard clause in franchise agreements, as it allows the franchisor to maintain control over who becomes a franchisee and ensures that any new franchisee meets their standards.
The FDD outlines conditions for Dermani Medspa's approval of a transfer, including the franchisee's full compliance with the Franchise Agreement, Dermani Medspa's approval of the transferee, the franchisee being current on all fees owed, the transferee signing the then-current franchise agreement, payment of a transfer fee, a release being signed, compliance with non-competition covenants, and satisfaction of all obligations to Dermani Medspa. These conditions are typical in franchising and are designed to protect the Dermani Medspa brand and ensure a smooth transition.