Besides what is described in Item 8, does Dermani Medspa provide any material benefits to franchisees (such as preferential renewal rights or granting additional franchises) based on their use of designated or approved suppliers?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to collect and retain any and all allowances, rebates, credits, incentives, or benefits (collectively, "Allowances") offered by manufacturers, suppliers, and distributors to you, to us, or to our affiliates based upon your purchases of products and services from manufacturers, suppliers, and distributors. We or our affiliates will have all of your right, title, and interest in and to any and all of these Allowances. We or our affiliates may collect and retain any or all of these Allowances without restriction (unless otherwise instructed by the manufacturer, supplier, or distributor). For the fiscal year ended December 31, 2024, neither we nor our affiliates earned revenue from Allowances. We reserve the right to negotiate purchase arrangements, including price terms, with suppliers regarding various products. In doing so, we seek to promote the overall interests of our franchise system and our interests as the franchisor. Except as described in this Item 8, we do not provide any material benefits to you (such as preferential renewal rights or granting additional franchises) based on your use of designated or approved suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–28)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, outside of what is described in Item 8, Dermani Medspa does not provide material benefits, such as preferential renewal rights or granting additional franchises, to franchisees based on their use of designated or approved suppliers. Dermani Medspa retains the right to collect allowances, rebates, credits, incentives, or benefits from suppliers based on franchisee purchases. Dermani Medspa may negotiate purchase arrangements with suppliers to promote the overall interests of the franchise system.
Dermani Medspa may establish strategic alliances or preferred vendor programs with suppliers, potentially limiting the number of approved suppliers franchisees can use. They may also designate specific sources that franchisees must use for certain products and services. Dermani Medspa can refuse to approve new suppliers proposed by franchisees if they believe it is in the best interest of the system.
Franchisees are required to purchase products, supplies, equipment, materials, and services only from suppliers that meet Dermani Medspa's specifications and have been approved in writing. This includes items such as dermani MEDSPA® design and image items, POS systems, medical equipment and supplies, computer hardware and software, and insurance coverage. Franchisees must also use Dermani Medspa's designated real estate broker and construction contractor, or pay them an oversight fee if they choose to use their own.
Prospective franchisees should be aware that Dermani Medspa has a significant amount of control over the supply chain and can benefit financially from supplier rebates and allowances. Franchisees are required to adhere to the System Standards and purchase from approved suppliers, which may impact their costs and operational flexibility. It is important for potential franchisees to carefully review Item 8 of the Franchise Disclosure Document to understand the restrictions and requirements related to suppliers and purchasing.