Does the Dermani Medspa Franchise Agreement include a Management Services Agreement?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
The dermani MEDSPA® will be operated by one or more physicians licensed to provide medical spa services in the state in which the dermani MEDSPA® is located. The physician or physicians will form a professional entity, which is a professional corporation, professional limited liability company, service corporation, or similar entity, referred to as a "PC," that will provide medical services to clients at the dermani MEDSPA®. In addition to signing the Franchise Agreement with us, before you begin operating the Franchised Business, you must enter into a management agreement ("Management Agreement") with the PC.
You must sign a Management Agreement with a PC unless your dermani MEDSPA® will be in a state that permits one entity to both manage and operate the dermani MEDSPA®, including providing medical services from the dermani MEDSPA®. If you are in a state that permits you to both manage the dermani MEDSPA® and provide medical services, you must sign our Waiver of Management Agreement. More information about the Waiver of Management Agreement is provided below. In the event applicable state law permits franchisees to operate the dermani MEDSPA®, or does not require a PC, then you as the owner of the Franchised Business must satisfy and comply with all other requirements that would otherwise pertain to the PC (for example, obtaining and maintaining professional liability coverage as discussed in Item 8).
Source: Item 22 — CONTRACTS (FDD page 66)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, franchisees are generally required to enter into a separate Management Agreement with a professional entity (PC) that provides the medical services at the Dermani Medspa. This PC is typically a professional corporation, professional limited liability company, or similar entity. The franchisee must sign this Management Agreement before beginning operations, as it outlines the management and administrative services the franchisee will provide to support the PC's medical practice. Dermani Medspa must approve the PC candidate and the terms of the Management Agreement.
However, there is an exception: if the Dermani Medspa location is in a state that permits a single entity to both manage and operate the medspa, including providing medical services, the franchisee may request a waiver of the Management Agreement. If Dermani Medspa grants this waiver, the franchisee must then enter into a "Waiver of Management Agreement." This waiver stipulates that the franchisee will operate the medspa and fulfill all responsibilities typically assigned to the PC under the standard Management Agreement.
Under the Waiver of Management Agreement, the franchisee must also represent that they have consulted with an attorney experienced in medical and healthcare laws in their state and have been advised that operating the franchised business as one entity is permissible. Dermani Medspa retains the final determination on whether to permit the waiver, even if the franchisee qualifies. The Management Agreement must be in effect at all times during the Franchise Agreement. If the Management Agreement is terminated, the franchisee must enter into a new agreement with a replacement PC within 120 days.