Can Dermani Medspa declare any breach to be a default and terminate the agreement?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
If any of such rights, options, arrangements, or areas are terminated or modified, such action will be without prejudice to our right to terminate this Agreement, and we will have the right to retain all Development Fees paid by you, and/or to terminate any other rights or arrangements under this
Agreement at any time thereafter for the same default or as a result of any additional defaults of the terms of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
Based on the 2025 Dermani Medspa Franchise Disclosure Document, if any rights, options, arrangements, or areas granted to the franchisee are terminated or modified, Dermani Medspa retains the right to terminate the agreement. This action does not prejudice Dermani Medspa's right to terminate the agreement and retain all development fees paid by the franchisee. Dermani Medspa can also terminate any other rights or arrangements under the agreement at any time for the same default or any additional defaults of the agreement's terms.
This clause means that Dermani Medspa has broad discretion to terminate the agreement if the franchisee fails to meet its obligations. The franchisee risks losing all development fees paid if Dermani Medspa terminates the agreement due to a default. This is a significant risk for potential franchisees, as it could result in substantial financial loss.
It is important for a prospective Dermani Medspa franchisee to carefully review the franchise agreement and understand all the conditions that could lead to termination. Franchisees should also ensure they have sufficient capital to meet their development obligations and comply with all terms of the agreement to minimize the risk of default and subsequent termination.