Is Dermani Medspa's consent to a transfer a waiver of any claims they have against the franchisee?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
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 consent to a transfer of the Franchise Agreement does not constitute a waiver of any claims they may have against the franchisee. Specifically, Item 17 outlines the conditions and implications related to franchise transfers.
This means that even if Dermani Medspa approves a franchisee's request to transfer their franchise to a new owner, Dermani Medspa retains the right to pursue any existing claims or legal actions against the original franchisee. This provision protects Dermani Medspa's interests by ensuring that franchisees cannot escape liability for any breaches of contract or other obligations simply by transferring the franchise.
For a prospective Dermani Medspa franchisee, this highlights the importance of fulfilling all obligations under the Franchise Agreement. It is crucial to remain compliant with the agreement terms and address any potential issues promptly to avoid future claims, even if the franchisee plans to transfer the business at some point. This also means that if a franchisee is considering purchasing a Dermani Medspa franchise from an existing franchisee, they should ensure that the current owner is in good standing with the franchisor to avoid inheriting any unresolved issues or liabilities.