Is the Dermani Medspa Development Fee refundable, and if not, under what circumstances is it non-refundable?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
es:
Please note that we do not offer direct or indirect financing to you for any items.
Except as described below, any amounts paid to us are nonrefundable unless otherwise noted below. For any amounts paid to third parties, the availability and conditions under which you may obtain refunds will depend on the terms offered by those third-party suppliers.
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- Development Fee. As discussed in Item 5, you must pay us a Development Fee equal to the Initial Franchise Fee for the first Franchised Business plus $35,000 for each additional Franchised Business that is scheduled to be established under the Area Development Agreement. This chart details the Development Fee for the right to open and operate a total of 2 Franchised Businesses and dermani MEDSPA®s, as that is the minimum commitment in order to enter into an Area Development Agreement. If you enter into an Area Development Agreement for more tha
Source: Item 5 — INITIAL FEES (FDD pages 13–14)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, amounts paid to Dermani Medspa are generally nonrefundable. Specifically, the Development Fee, which covers the initial franchise fee for the first franchised business and additional fees for each subsequent business under the Area Development Agreement, is nonrefundable.
For an Area Development Agreement, the Development Fee is the initial franchise fee for the first Dermani Medspa location, plus $35,000 for each additional location to be opened. The FDD specifies that the example chart details the Development Fee for the right to open and operate a total of 2 Franchised Businesses and dermani MEDSPA®s, as that is the minimum commitment in order to enter into an Area Development Agreement. If you enter into an Area Development Agreement for more than 2 Franchised Businesses and dermani MEDSPA®s, then the Development Fee will be higher.
However, the Illinois Addendum to the Area Development Agreement provides an exception. If a franchisee is in Illinois, payment of the Development Fee is deferred until Dermani Medspa completes its initial obligations and the first franchised business opens. This deferral is mandated by the Illinois Attorney General's Office due to Dermani Medspa's financial condition. This suggests that in Illinois, the Development Fee is not paid upfront and would not be subject to the standard non-refundability clause until it is paid. Prospective franchisees should confirm the current financial condition of the franchisor and whether this deferral is still in effect.