What is the consequence if a Dermani Medspa franchisee interferes with Dermani Medspa's ability to grant franchises?

According to the 2025 Dermani Medspa FDD, a franchisee is prohibited from interfering with Dermani Medspa's business or that of its affiliates, developers, or franchisees. Specifically, the franchisee agrees not to "In any manner interfere with, disturb, disrupt, impair, diminish, or otherwise jeopardize our business or that of our affiliates or any of our developers or franchisees." This covenant applies during the term of the Area Development Agreement.

This restriction means a Dermani Medspa franchisee must not take any actions that could negatively impact Dermani Medspa's operations, its ability to support existing franchisees, or its efforts to recruit new franchisees. This could include disparaging the brand, attempting to poach employees from other locations, or actively discouraging potential franchisees from joining the system.

If a franchisee violates this covenant, Dermani Medspa would likely have grounds to pursue legal action, potentially including termination of the franchise agreement. This type of clause is common in franchise agreements to protect the integrity and stability of the franchise system as a whole. Prospective franchisees should carefully consider this restriction and ensure they are prepared to fully support the Dermani Medspa brand and its network of franchisees.