For Dermani Medspa, what costs are excluded from the Cost of Goods Sold?

According to Dermani Medspa's 2025 Franchise Disclosure Document, the Cost of Goods Sold (COGS) includes the total amount of products and goods, such as injectables and skincare products, that were sold or consumed by each company location during the measurement period. However, the FDD specifies that costs or expenses for items that will not be used, offered, or sold at franchised Dermani Medspa locations are excluded from the Cost of Goods Sold.

This exclusion is particularly relevant because some company locations may offer services or products that are not part of the standard franchise model. For example, one franchised location performed Coolsculpting services, and the revenues from this service were excluded from the gross revenue figures for that location. Similarly, the costs associated with Coolsculpting cycles are excluded from the Cost of Goods Sold for franchised locations.

For a prospective Dermani Medspa franchisee, this means that the Cost of Goods Sold figures presented in the Item 19 financial performance representation are tailored to reflect the products and services that franchisees will typically offer. It is important to understand which specific items are excluded to accurately assess the potential profitability of a Dermani Medspa franchise. Franchisees should confirm with Dermani Medspa exactly which costs are included and excluded from the Cost of Goods Sold to ensure they have a clear understanding of their potential expenses.