What is the cure period for a Dermani Medspa franchisee's failure to pay amounts due?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2.10. you fail to pay us any amounts due and do not correct the failure within five (5) days after we deliver written notice of that failure to you, or immediately if payment has not been made within thirty (30) days of its due date;
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, a franchisee has a specific timeframe to correct a failure to pay amounts due. If a Dermani Medspa franchisee fails to pay amounts owed to the franchisor, they have five days to correct this failure after receiving written notice.
However, there's an exception to this five-day cure period. If the payment has not been made within 30 days of its original due date, the franchisee must make the payment immediately upon notice. This means the franchisee loses the standard five-day cure period if they have been delinquent for a month.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and provide ongoing support to the franchise system. Franchisees should be aware of these strict payment terms and ensure they have systems in place to manage their finances effectively to avoid potential default and termination of their franchise agreement.