What constitutes a default under the Dermani Medspa Development Agreement regarding the Development Schedule?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
he franchisee entity; and (c) you or your Operating Principal executes a guarantee, guaranteeing to us the timely payment and performance of the franchisee's obligations under the Franchise Agreement.
- 3.2. Franchise Agreements. Each dermani MEDSPA® must be located at a site approved by us in writing, within the Development Area, as provided in the Franchise Agreement (the "Premises"). The Franchise Agreement for the first (1st) Franchised Business developed hereunder will be in the form of the Franchise Agreement attached hereto as Exhibit D, and the Franchise Agreement for each additional Franchised Business developed hereunder will be the form of Franchise Agreement being offered generally by us at the time each such Franchise Agreement is executed.
- 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.
4. TERM
- 4.1. Term.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, failing to adhere to the Development Schedule constitutes a default under the Development Agreement. Specifically, missing a deadline outlined in the Development Schedule, which is detailed in Exhibit A of the agreement, is considered a default. Additionally, if a Franchise Agreement for any Dermani Medspa franchised business operated by the developer, their owners, or any affiliated entity is terminated, it also constitutes a default under the Development Agreement.
Time is considered critical in fulfilling the Development Schedule. Dermani Medspa emphasizes the importance of strictly complying with the set deadlines. If a default occurs, Dermani Medspa has the option to terminate the Development Agreement and all rights granted to the developer. This termination can be enacted immediately upon providing notice, without offering an opportunity to rectify the default.
This aspect of the agreement is crucial for potential Dermani Medspa area developers to understand. The Development Schedule contains specific obligations and deadlines that must be met to avoid default and potential termination of the agreement. Prospective developers should carefully review Exhibit A and assess their ability to meet the outlined milestones before entering into the Development Agreement. It is also important to note that a default under the Area Development Agreement does not constitute a default under any separate Franchise Agreement between the parties.