Does the Dermani Medspa franchise agreement allow for the transfer of a lease without transferring the franchise agreement itself?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2.1. You understand and acknowledge that the rights and duties this Agreement creates are personal to you and that we have granted you the right to develop Franchised Businesses and manage dermani MEDSPA®s in reliance upon our perceptions of your individual or collective character, skill, aptitude, attitude, business ability, and financial capacity. Accordingly, none of the following may be transferred without our prior written approval: (i) this Agreement or any interest in this Agreement; (ii) any Franchise Agreement signed by you, your Owner(s), or any of your affiliates pursuant to this Agreement; (iii) any Franchised Business or any right to receive all or a portion of any Franchised Business's or dermani MEDSPA®'s profits or losses or capital appreciation; (iv) your lease(s), mortgage(s), or other agreement where each Franchised Business or dermani MEDSPA® is or will be located; (v) substantially all of the assets of the Franchised Business and dermani MEDSPA®; (vi) any ownership interest in you (regardless of its size); or (vii) any ownership interest in any of your owners. A transfer of the Franchised Business's ownership, possession, or control, or substantially all of its assets, may be made only with a transfer of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, the franchise agreement does not allow for the transfer of a lease without transferring the franchise agreement itself. The FDD states that your leases cannot be transferred without prior written approval from Dermani Medspa. Furthermore, a transfer of the Franchised Business's ownership, possession, or control, or substantially all of its assets, may be made only with a transfer of the Franchise Agreement.
This means that if a Dermani Medspa franchisee wants to get out of their lease, they cannot simply transfer it to another party. They must also transfer the franchise agreement, which requires Dermani Medspa's approval. This is to ensure that the new franchisee meets Dermani Medspa's standards and is able to operate the business successfully.
This provision protects Dermani Medspa by ensuring that the brand is only associated with qualified and capable franchisees. However, it could also make it more difficult for a franchisee to sell their business, as they will need to find a buyer who is approved by Dermani Medspa and willing to take over the franchise agreement. Prospective franchisees should carefully consider this restriction and discuss it with Dermani Medspa before signing the franchise agreement.