What constitutes the 'Computer System' that Dermani Medspa specifies for its franchisees?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- “Operating Assets” the fixtures, furniture, equipment (including medical and diagnostic equipment, patient and waiting room furniture, fixtures and equipment, Computer System, facsimile, or other technology systems), furnishings, and signs to be used in the Franchised Business and at the Medspa.
You may not install any software, other than authorized upgrades, or make any hardware modifications to the Computer System that might hamper or interfere with the operation of the Computer System in the manner we require.
We have the right to specify in the Manual, or otherwise in writing, the information that you must collect and maintain through the Computer System and to do so at the intervals we designate.
Subject to any applicable laws pertaining to the privacy of consumer, employee, and transactional information, including but not limited to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), you agree to provide us, or designated suppliers of support services that use such data to provide services to the Franchised Business, with the reports that we may reasonably request.
You agree to allow us to have independent access to the information generated or stored in your Computer System.
During any periods that we have independent access, we may access the Computer System as we deem appropriate (including on a continual basis), and retrieve all information concerning your Franchised Business's operation, subject to your and our compliance with HIPAA (if applicable) or other applicable law relating to confidentiality of patient records.
There are no contractual limitations on our right to access your Company System for information and data.
Prior to opening the Medspa, you shall pay us an one-time software licensing fee associated with computer software that we may require for use in your Medspa and/or are developing, utilizing, or enhancing for use in Medspas as we deem necessary in our sole discretion (the “Initial Licensing Fee”).
In any event, the Initial Licensing Fee shall not exceed Two Thousand Five Hundred Dollars ($2,500).
We periodically may modify System Standards, and these modifications may obligate you to invest additional capital in the Franchised Business and/or incur higher operating costs.
You agree to implement any changes in System Standards within the time period we request, whether they involve refurbishing or remodeling the Premises or any other aspect of the Franchised Business, buying new Operating Assets, adding new services, or otherwise modifying the nature of your operations, as if they were part of this Agreement as of the Effective Date.
By execution of this Agreement, you and we agree to abide by the terms of the Business Associate Agreement regarding customers' protected health information, as provided in the Management Agreement at Exhibit J, the terms of which are hereby incorporated into and become effective with the execution of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, the 'Computer System' is considered part of the 'Operating Assets' necessary for running the franchise. Dermani Medspa maintains significant control over this system. Franchisees are prohibited from installing unauthorized software or making hardware modifications that could disrupt the system's required operation. Dermani Medspa can specify the data franchisees must collect and maintain, and franchisees must provide reports as requested, adhering to privacy laws like HIPAA. Dermani Medspa has independent access to the data within the Computer System and can retrieve information concerning the franchise's operations.
Prior to opening their Medspa, franchisees must pay a one-time software licensing fee for computer software that Dermani Medspa requires for use in the Medspa or is developing for use in Medspas. This Initial Licensing Fee will not exceed $2,500.
Dermani Medspa also has the authority to modify System Standards periodically, which may require franchisees to invest additional capital in the Franchised Business or incur higher operating costs. Franchisees are obligated to implement these changes within the specified timeframe, whether it involves refurbishing the Premises, buying new Operating Assets, or modifying operations. This includes compliance with the Business Associate Agreement regarding customers' protected health information, as provided in the Management Agreement at Exhibit J.