Who bears the cost and expense of any annual audit obtained by Dermani Medspa?

According to Dermani Medspa's 2025 Franchise Disclosure Document, the System Marketing Fund bears the expense of any annual audit of the System Marketing Fund. Dermani Medspa will prepare an annual, unaudited statement of System Marketing Fund collections and expenses, which is available for franchisee review upon written request 120 days after the fiscal year end. However, Dermani Medspa may also have the System Marketing Fund audited annually by an independent certified public accountant.

This means that Dermani Medspa franchisees contribute to the System Marketing Fund, and these funds are used to cover the costs of an audit if Dermani Medspa chooses to have one performed. This is a common practice in franchising, where marketing funds are used for various activities that benefit the entire franchise system.

It is important to note that while Dermani Medspa will provide an unaudited statement, the decision to conduct an actual audit is at their discretion. Franchisees may want to inquire about the frequency and scope of these audits to ensure transparency and accountability in the management of the System Marketing Fund. Additionally, franchisees should understand that Dermani Medspa also has the right to use collection agents and institute legal proceedings to collect System Marketing Fund contributions at the System Marketing Fund's expense.