What expenses are included in the 'Rent Expense' calculation for a Dermani Medspa?

According to Dermani Medspa's 2025 Franchise Disclosure Document, the 'Rent Expense' calculation includes the total amount each company location paid to its landlord for rent, CAM (Common Area Maintenance), and all other expenses charged by the landlord during the measurement period. This definition applies to the financial performance representation for company-owned locations. For franchised locations, 'Rent' means the total amount that each franchised location reported as paying during the measurement period.

For a prospective Dermani Medspa franchisee, this means that the 'Rent Expense' figure presented in Item 19 encompasses more than just the base rent. It also includes additional charges from the landlord, such as CAM fees, which cover the costs of maintaining common areas like parking lots, landscaping, and building exteriors. Franchisees should factor in these additional expenses when projecting their operating costs.

It is important to note that the financial performance representations are based on historical data from existing Dermani Medspa locations. The rent expenses can vary significantly depending on the location's size, geographic area, and lease terms. For example, the FDD shows that in 2024, company-owned Rent Expenses ranged from $56,886 to $126,075, while franchised Rent expenses ranged from $50,063 to $107,335. A prospective franchisee should conduct thorough market research and negotiate favorable lease terms to manage their rent expenses effectively.

Item 19 of the Dermani Medspa FDD also clarifies that the financial information is based on unaudited data reported by affiliates. While this data provides a general overview, prospective franchisees should request written substantiation of the financial performance information and consult with financial advisors to assess the potential financial performance of their specific Dermani Medspa location.