What are all the fees a Dermani Medspa franchisee might pay, combining the information from Item 5 and Item 6?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Franchise Fee.
As discussed in Item 5, the Initial Franchise Fee is $55,000.
The franchise fee must be paid when the Franchise Agreement is signed.
Initial Licensing Fee.
As discussed in Item 5, you shall pay us our then-current Initial Licensing Fee, which in any event shall not exceed $2,500.
Currently this is set at zero dollars.
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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 than 2 Franchised Businesses and dermani MEDSPA®s, then the Development Fee will be higher.
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- The royalty fee will be 5% of the Gross Revenue of the Franchised Business (the "Royalty Fee") each Week during the term of the Franchise Agreement, including any renewal term. You are also required to pay us our then-current Software Fee, currently $440 per month, associated with licensing designated software, applications, and/or other platforms from us or our designee for the Franchised Business. You must also purchase at least one email address from our designated and approved vendor for use in connection with your Franchised Business and dermani MEDSPA® in accordance with our standards and specification. Each email address currently costs $16 per month per email address. One email address is included in your monthly Social Media/Technology Fee charge. We estimate that you will spend approximately $1,000 annual on maintenance and support contracts for your Computer System, which includes any upgrade. We will assist you in developing the Grand Opening Marketing Program; you will be responsible for the cost of this program. (Franchise Agreement, Section 9.3) However, in cases and circumstances in which it may be appropriate or necessary to do so, we reserve the right to modified some of these fees for a particular franchisee. It is your sole responsibility to ensure your full compliance with applicable federal and state laws and regulations, including, without limitation, those regarding the payment of fees to us. We reserve the right to obtain payment from you for all fees due to us by way of an electronic fund transfer (or EFT) procedures, described in Note 2 below. All fees are imposed by and are payable to us. All fees are uniformly applied to new system franchisees and are non-refundable.
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, franchisees can expect to pay several fees to the franchisor. The initial franchise fee is $55,000, and there's an initial licensing fee that cannot exceed $2,500. Currently, the initial licensing fee is set at zero dollars. For franchisees entering into an Area Development Agreement, a Development Fee is required, calculated as the initial franchise fee for the first location plus $35,000 for each additional location.
Franchisees also pay an ongoing royalty fee, which is 5% of the franchised business's gross revenue. Additionally, franchisees are required to pay a software fee of $440 per month. They must purchase at least one email address from the franchisor's designated vendor, costing $16 per month per email address, although one email address is included in the monthly Social Media/Technology Fee charge.
Other potential fees include costs associated with site selection if the franchisee uses their own real estate broker and contractor, architectural and MEP plans if they are not already in place, and the cost of the Grand Opening Marketing Program. Franchisees may also incur expenses for additional on-site assistance from the franchisor beyond the initial two days provided at opening. Furthermore, future gift card or membership programs may require franchisees to purchase and install software, hardware, and other items, and pay fees to a third-party vendor to administer these programs. Franchisees are also expected to spend approximately $1,000 annually on maintenance and support contracts for their computer system, including any upgrades.
It is important to note that Dermani Medspa reserves the right to modify some of these fees for a particular franchisee in certain circumstances. All fees are generally applied uniformly to new franchisees and are non-refundable. Franchisees are responsible for ensuring full compliance with all applicable federal and state laws and regulations regarding fee payments.