What expenses are specifically excluded from the 'Payroll Expenses' calculation for a Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Payroll Expenses" means the total amount each Company Location paid its employees in 2022 for the types of payroll expenses that a franchisee is likely to incur in operating its dermani MEDSPA®, including pay, benefits, and payroll taxes. The number and type of specific personnel varies among each Location, but generally includes 1 to 2 front desk coordinators per Company Location, 3 to 7 full-time employees ("FTE") estheticians/laser practitioners per Company Location, and 1 to 3 nurse practitioners and/or physician assistant cosmetic injectors per Company Location. Because we do not contract with a PC or management company, Payroll Expenses also includes each Company Location 's medical director's fees. Payroll Expenses does not include any amounts that you (or an Operating Principal) may pay yourself. Excluded from this line item are the payroll expenses that were incurred by a Company Location that is contributable to us as the franchisor, including, without limitation, expenses that were incurred by a Company Location in offering esthetician training and other services to the general public, as you will not be incurring such costs and expenses. As noted above, based upon applicable local laws, none of the Locations currently contract with a PC or a management company. You, as a franchisee, or your PC, will have the sole discretion to determine the number of employees and managers hired for your dermani MEDSPA®, and their hours, compensation and benefits. These figures are not requirements nor recommendations. Amounts for tips collected on behalf of the staff have been removed from Revenue and from Payroll costs.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 58–61)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the 'Payroll Expenses' calculation excludes specific costs. The calculation does not include any amounts that the franchisee (or an Operating Principal) may pay themselves. Additionally, the calculation excludes payroll expenses incurred by a Company Location that are attributable to Dermani Medspa as the franchisor. This exclusion specifically includes expenses incurred by a Company Location for providing esthetician training and other services to the general public, as franchisees will not be incurring these specific costs.
In practical terms, this means that when a prospective Dermani Medspa franchisee is reviewing the provided financial performance representations, they should understand that the 'Payroll Expenses' figures do not reflect any salary or compensation they might draw as an owner/operator. The figures also do not include costs associated with services that the corporate-owned locations provide, but that franchisees will not. This is important for accurately projecting their own potential payroll expenses.
It is also important to note that amounts for tips collected on behalf of the staff have been removed from both Revenue and Payroll costs. This provides a clearer picture of the actual payroll expenses incurred by the Dermani Medspa locations. The FDD emphasizes that franchisees have the sole discretion to determine the number of employees and managers hired, their hours, compensation, and benefits, and that the provided figures are neither requirements nor recommendations.