What constitutes a default under the Development Agreement for a Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3. Development Schedule. Recognizing that time is of the essence, you agree to satisfy each deadline set forth in the Development Schedule in Exhibit A of this Agreement. Your failure to adhere to the Development Schedule will constitute a default under this Agreement as provided in Section 8.2 below. You acknowledge and agree that the time limits and time frames set forth in and inherent in the Development Schedule, and not those in the Franchise Agreement, will govern your obligations in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, a failure to adhere to the Development Schedule constitutes a default under the Development Agreement. The Development Schedule is detailed in Exhibit A of the agreement and outlines the deadlines for developing Franchised Businesses. Dermani Medspa emphasizes that time is of the essence in meeting these deadlines.
This means that a Dermani Medspa area developer must strictly follow the timelines set forth in Exhibit A. Missing these deadlines gives Dermani Medspa the right to terminate the agreement, as stated in Section 8.2. The FDD highlights that the time limits specified in the Development Schedule, rather than those in the Franchise Agreement, govern the developer's obligations under the Development Agreement.
Prospective Dermani Medspa developers should carefully review Exhibit A and understand the implications of failing to meet the specified deadlines. Since Dermani Medspa retains the right to terminate the agreement if the schedule is not followed, it is crucial to have a realistic plan for meeting the development milestones. Developers should also be aware that Dermani Medspa may have the right to retain all Development Fees paid if the agreement is terminated due to default.