What is the Dermani Medspa company's role in the non-disclosure and non-competition covenants?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, we may require you, your Operating Principal, and any employee who may have access to any confidential information to sign non-disclosure and non-competition covenants. Every one of these covenants must provide that the person signing will maintain the confidentiality of information that they receive in their employment or affiliation with you, the Franchised Business, or the dermani MEDSPA®. These agreements must be in a form that we find satisfactory, and must include, among other things, specific identification of our company as a third party beneficiary with the independent right to enforce the covenants. Our current form for this agreement is attached to the Franchise Agreement as Exhibit F.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 47–48)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa may require franchisees, their Operating Principals, and any employees with access to confidential information to sign non-disclosure and non-competition covenants. These covenants are designed to protect the confidentiality of information received during their employment or affiliation with the franchisee, the Franchised Business, or Dermani Medspa itself.
The agreements must be in a form that Dermani Medspa finds satisfactory. Importantly, Dermani Medspa requires that these agreements specifically identify the company as a third-party beneficiary. This designation grants Dermani Medspa the independent right to enforce the covenants, meaning they can directly take legal action to ensure compliance, even if the franchisee does not.
The current form for the non-disclosure and non-competition agreement is included as Exhibit F to the Franchise Agreement. This allows prospective franchisees to review the specific terms and conditions of the agreement before entering into the franchise agreement. This is a common practice in franchising, as franchisors seek to protect their trade secrets, customer relationships, and competitive advantage.