What financial statements will the Manager provide to the Practice for Dermani Medspa, reflecting fee collections and expense disbursements?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the limitations, conditions and restrictions contained in the Agreement and any further restrictions imposed by applicable law (including state corporate practice of medicine doctrines), Manager shall provide the following services:
- (c) Accounting and Financial Administrative Services. With respect to accounting and financial management services, Manager shall:
- (i) have exclusive authority with respect to the establishment and preparation of annual budgets for Practice, which budgets shall reflect in reasonable detail anticipated revenues and expenses;
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Manager will provide accounting and financial administrative services to the Practice. This includes having exclusive authority with respect to the establishment and preparation of annual budgets for the Practice. These budgets must reflect, in reasonable detail, anticipated revenues and expenses.
This means that as a Dermani Medspa franchisee, you will receive annual budgets prepared by the Manager that outline expected income and costs for your location. These budgets are intended to provide a clear financial roadmap for the business. The Manager's role in preparing these budgets aims to ensure a structured approach to financial planning, which can be beneficial for franchisees who may not have extensive experience in financial management.
However, the FDD excerpt does not specify the exact types of financial statements that will be provided, nor the frequency with which they will be delivered. It only mentions the preparation of annual budgets. A prospective franchisee should seek clarification from Dermani Medspa regarding the specific financial reports they can expect to receive, such as monthly profit and loss statements, balance sheets, or cash flow statements, to fully understand the financial oversight and reporting structure.