Does the Dermani Medspa Franchise Agreement reference the Management Services Agreement?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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).
We must approve the PC candidate. Under the Management Agreement, you will provide the PC with management and administrative services and support consistent with the System to support the PC's practice and its delivery of medical spa services and related products to clients at the dermani MEDSPA®, consistent with all applicable laws and regulations. The services the Franchised Business will provide to the dermani MEDSPA® include billing and collections, business planning, accounts payable management, bookkeeping and financial management, client records maintenance, management of administrative staff, arranging for the PC to obtain and maintain professional liability insurance, marketing and promotional activities, and arranging legal services and credentialing support. Unless otherwise approved by us, you must use our standard form of Management Agreement, but you may negotiate the monetary terms and, with our written consent, certain other terms of the relationship with the PC. It is your sole responsibility to make sure your Management Agreement is compliant with all state and local laws and must be reviewed by a healthcare attorney knowledgeable in the laws of the state you will be operating. You must have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business and the term of the Franchise Agreement. The Management Agreement may not be signed by you or the PC until we have approved of the Management Agreement and its negotiated terms.
Source: Item 22 — CONTRACTS (FDD page 66)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Franchise Agreement does reference the Management Agreement. Franchisees are required to sign a Management Agreement with a professional corporation (PC) before operating their Dermani Medspa, unless the state permits a single entity to manage and operate the medspa, including providing medical services. In such cases, a Waiver of Management Agreement is required.
The Dermani Medspa franchisee must ensure the PC offers all medical services in accordance with both the Management Agreement and the Dermani Medspa System standards. The franchisee must use Dermani Medspa's standard Management Agreement form, although the monetary terms and certain other terms can be negotiated with written consent from Dermani Medspa. The final Management Agreement requires written approval from Dermani Medspa before it is signed with the PC.
During the term of the Franchise Agreement, the franchisee must maintain a Management Agreement with a PC, unless a Waiver of Management Agreement is in place. The franchisee is responsible for ensuring that all medical personnel of the PC are duly licensed and board certified as required by their respective states and possess the necessary experience and skills to perform the medical services. The Management Agreement ensures that the Franchised Business provides management services to the Dermani Medspa, supporting the PC's practice and delivery of medical spa services in compliance with applicable laws and regulations.