Does the Dermani Medspa franchise agreement allow fee splitting for medical services?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
"PC" the professional corporation, professional limited liability company or other professional entity as permitted by law in your state to operate the Medspa.
"Provider Costs" – includes the salaries and benefits paid by the PC to the physicians, medical providers, and staff employed by the PC providing services at the Medspa.
"Management Agreement" the agreement that you enter into with a PC prior to opening the Franchised Business to manage the Medspa.
"Management Fee" The Management Fee is paid by the PC to you in exchange for the back office, administrative, and other services provided to the PC by you.
"Gross Revenue"– the Gross Revenue of the Franchised Business means all of the dermani MEDSPA®'s revenue generated from the sale of all medical spa and cosmetic services related to skin, cosmetic injectables, laser hair removal treatments, membership fees, and all other products and services offered at or from the dermani MEDSPA®, and all other income of every kind and nature related to, derived from, or originating from the dermani MEDSPA®, whether at retail or wholesale, including off-premises services, mobile clinics, and temporary locations (whether these sales are permitted or not), and proceeds of any business interruption insurance policies, whether any of the products or services are sold for cash, check, or credit, and regardless of collection in the case of check or credit; except that "Gross Revenue" excludes any tips received by any staff or personnel who will provide the actual medical services, clients customer refunds, discounts from coupon sales, rebates, sales taxes, and/or other taxes collected from customers by you and actually transmitted to the appropriate taxing authorities.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
Based on the 2025 Dermani Medspa Franchise Disclosure Document, the franchise operates through a professional corporation (PC) that employs medical providers. The franchisee enters into a Management Agreement with this PC to handle administrative and back-office services. The PC then pays the franchisee a 'Management Fee' in exchange for these services.
While the FDD defines 'Provider Costs' as the salaries and benefits paid by the PC to medical staff, it does not explicitly detail how the PC generates revenue or whether Dermani Medspa allows the franchisee to directly share in the revenue generated from medical services. The FDD specifies that 'Gross Revenue' includes revenue from medical spa and cosmetic services but does not clarify if or how this revenue is split between the franchisee and the PC providing the medical services.
Therefore, it is not possible to determine from the provided excerpts whether Dermani Medspa permits fee splitting for medical services. A prospective franchisee should seek clarification from Dermani Medspa regarding the financial relationship between the franchisee, the PC, and the medical providers, including details on revenue sharing and compliance with applicable healthcare regulations.