Can Dermani Medspa assign its franchise agreement to another entity without notifying the franchisee?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
12.1. Transfer by Us.
- 12.1.1. We shall have the right to assign this Agreement and all of our attendant rights and privileges to any person, firm, corporation or other entity, without prior notice to you, and we do not need your consent or approval to do so.
- 12.1.2. You expressly affirm and agree that we may sell our assets, our rights to the Marks or to the System outright to a third party; may sell, assign, or transfer any or all of the equity interests in us; may go public; may engage in a private placement of some or all of our securities; may merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; without prior notice to you, and we do not need your consent or approval to do so. Further, with regard to any or all of the above sales, assignments and dispositions, you expressly and specifically waive any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "dermani MEDSPA® Franchising LLC" as Franchisor. Nothing contained in this Agreement shall require us to remain in the same business or to offer the same products and services, whether or not bearing the Marks, in the event that we exercise our right to assign our rights in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa has the right to assign the franchise agreement to another entity without providing prior notice to the franchisee. Dermani Medspa does not need the franchisee's consent or approval to make such an assignment. This means that a franchisee could find themselves working with a completely different franchisor without any advance warning.
Dermani Medspa can sell its assets, rights to its trademarks, or the entire company without needing the franchisee's approval. They can also engage in various financial transactions such as going public, private placements, mergers, acquisitions, or restructuring without notifying the franchisee or requiring their consent.
The franchisee also waives any claims, demands, or damages related to the loss of the Dermani Medspa trademarks or the association with Dermani Medspa Franchising LLC as the franchisor, should any of these sales, assignments, or dispositions occur. This clause protects Dermani Medspa from potential legal action by franchisees who may be negatively affected by a change in ownership or brand direction.