What factors can significantly affect the cost of leasing commercial space for a Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
estimate assumes that both architectural and MEP plans will need to be prepared.
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- Real Estate; Site Evaluation; Prepaid Rent and Security Deposit. The prototypical dermani MEDSPA® is approximately 1,500 to 2,000 square feet in size. The cost per square foot for leasing commercial space varies considerably depending upon the location and market conditions affecting commercial property. We estimate the cost of leasing commercial space per square foot to be between $25 and $50 annually (although this figure can vary significantly from market to market). The amounts in the chart reflect our estimate for your payment of rent for the first three months of operations at the dermani MEDSPA®. You may also be required to pay prepaid rent and/or a security deposit in connection with leasing space for the operation of the dermani MEDSPA®. Landlords will vary in the amount they charge for a security deposit; from $0 to as much as six months' rent. We have used a security deposit of one month's rent for the estimate. You should consult a real estate broker and/or other prof
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, several factors can significantly impact the cost of leasing commercial space. The FDD indicates that the cost per square foot for leasing commercial space can vary considerably based on location and market conditions. Dermani Medspa estimates this cost to be between $25 and $50 annually per square foot, but this figure can change significantly from market to market.
The size of the Dermani Medspa, which is typically 1,500 to 2,000 square feet, will also affect the total lease cost. Additionally, landlords may require prepaid rent and/or a security deposit, which can range from $0 to as much as six months' rent, although Dermani Medspa uses an estimate of one month's rent for the initial investment calculation. The FDD advises prospective franchisees to consult a real estate broker or other professional to assess typical leasing costs in their target market area.
Furthermore, the initial investment chart reflects an estimate for the first three months of rent. Leasehold improvements, which include wiring, flooring, plumbing, and HVAC, also contribute to the overall cost. These costs can vary depending on the size, location, configuration, and condition of the premises, and may be higher if special requirements apply due to historical, architectural, or preservation regulations. A tenant improvement allowance may be negotiated with the landlord to cover a portion of these costs, but the amount, scope, and type of allowance cannot be estimated by Dermani Medspa.