Can Dermani Medspa establish a company-owned insurance package that all franchisees must participate in?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.6.1. You must maintain in force, at your sole expense, the insurance coverages that we require. We reserve the right to designate the insurance agent you must use to assist you in obtaining the required insurance. We may also, in the future, establish a company-owned package of insurance coverages in which you and all other franchisees must participate, and in this event you would pay insurance premiums to us.
- 8.6.2. Your insurance coverage must be maintained during the term of the Franchise Agreement and must be obtained from a responsible, duly licensed carrier or carriers acceptable to us and having a rating of at least "A" with A.M. Best Company. Currently you must maintain the following insurance:
- (a) business interruption insurance covering a minimum of twelve (12) months of income, including coverage for our continuing fees, and with us named as a loss payee with respect to our continuing fees;
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa has the right to establish a company-owned insurance package in which all franchisees must participate. If this occurs, franchisees would be required to pay insurance premiums directly to Dermani Medspa.
Dermani Medspa also reserves the right to designate the insurance agent that franchisees must use to obtain the required insurance coverage. Franchisees are obligated to maintain the insurance coverage that Dermani Medspa requires at their sole expense throughout the term of the Franchise Agreement.
Currently, franchisees must maintain specific insurance coverages with a carrier acceptable to Dermani Medspa and having a rating of at least "A" with A.M. Best Company. This includes business interruption insurance covering a minimum of twelve months of income, including coverage for Dermani Medspa's continuing fees, with Dermani Medspa named as a loss payee with respect to these fees.