Are the fees imposed by Dermani Medspa uniformly applied to all new franchisees?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes:
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- All fees are imposed by and are payable to us. All fees are uniformly applied to new system franchisees and are non-refundable. 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.
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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.
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the fees are generally applied uniformly to new franchisees. However, Dermani Medspa retains the right to modify some fees for a particular franchisee if deemed appropriate or necessary. This means that while most new franchisees can expect to pay the standard fees outlined in the FDD, there could be exceptions where Dermani Medspa adjusts the fees for an individual franchisee based on specific circumstances.
The standard fees that Dermani Medspa franchisees can expect to pay include a royalty fee of 5% of Gross Revenue, a System Marketing Fee of up to 2% of Gross Revenue (currently 0.25%), and a Social Media/Technology Fee, which is currently $300 per month. There is also a local advertising spend of $500 each month. These fees, along with others such as the Online Management Fee and Software Fee, contribute to the ongoing costs of operating a Dermani Medspa franchise.
While the fees are generally uniform, the possibility of modification introduces an element of uncertainty. A prospective franchisee should inquire about the specific circumstances under which Dermani Medspa might modify fees and seek clarification on how these potential modifications could impact their financial obligations. Understanding the conditions that could lead to fee adjustments is crucial for accurate financial planning and risk assessment.