Does the Dermani Medspa franchise agreement require the franchisee to have one or more licensed and qualified medical professionals at their Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.1.2. You agree that your Medspa will have one or more licensed and qualified medical professionals (referred to as a "Licensed Professional"). You (if you are a Licensed Professional) or other Licensed Professionals engaged by you will be involved in the operations of your Medspa in accordance with your state's laws and regulations, this Agreement, and the Manuals.
- 1.2. Professional Corporation Under Management; Services. Prior to commencing operations of the Franchised Business, you shall enter into a Management Agreement with a PC whereby you will provide to the PC management and administrative services and support consistent with the System and as outlined in our form of Management Agreement to support the PC's medspa or medical center and its delivery of medical services and related products to patients, consistent with all applicable laws and regulations. Subject to applicable law and medical licensing board and regulations, the PC shall employ and control the physicians and professionally licensed personnel, including physician assistants, medical assistants, medical receptionists, estheticians, laser practitioners, and other similar medical professionals who will provide the actual medical services at the Medspa. You will not provide any actual medical services, nor will you supervise, direct, control or suggest to the PC or its physicians or employees the manner in which the PC provides or may provide medical services to its patients. You acknowledge and agree that we will not provide any medical services, nor will we train, supervise, direct, control or suggest to the PC or its physicians or employees the manner in which the PC provides medical services to its patients. You must use our standard form of Management Agreement; provided, however, that you should revise any provisions as necessary in order to be consistent with applicable state law, and based on advice you receive from your lawyers and other advisors, and you may negotiate the monetary terms and, with our written consent, certain other terms of the relationship with the PC. You must obtain our written approval of the final Management Agreement prior to its execution. We must approve the PC candidate. You shall ensure that the types of services available through the PC are limited to those in accordance with and pursuant to this Agreement and that the PC is operated in accordance with the Management Agreement. You shall have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business. In the event the Management Agreement with the PC is terminated during the Initial Term, you shall enter into a new Management Agreement with a replacement PC as soon as practicable, but in no event later than one hundred twenty (120) days after you provide or receive notice that the Management Agreement with the original PC is being terminated. In the event applicable state law does not require the use of a management agreement between you and a PC, as determined by you and your counsel, we may waive certain requirements and require you to execute our waiver of management agreement ("Waiver of Management Agreement"). If you qualify to enter into the Waiver of Management Agreement, we will make the final determination whether we will permit the waiver or not.
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 stipulates that each Medspa location must have at least one licensed and qualified medical professional. This requirement ensures that the medical services provided at the Medspa are compliant with state laws and regulations. The franchisee, if they are a licensed professional, or other licensed professionals engaged by the franchisee, must be involved in the Medspa's operations.
Furthermore, Dermani Medspa requires franchisees to enter into a Management Agreement with a Professional Corporation (PC) before commencing operations. This PC is responsible for employing and controlling the physicians and professionally licensed personnel who will provide the actual medical services at the Medspa. The franchisee's role is to provide management and administrative services to the PC, ensuring that the medical services are delivered in accordance with all applicable laws and regulations. The franchisee is explicitly prohibited from providing any actual medical services or from supervising the PC's medical staff.
This structure is designed to ensure compliance with state laws regarding the corporate practice of medicine, which often restrict non-licensed individuals from directly controlling medical practices. By mandating a Management Agreement with a PC, Dermani Medspa aims to maintain a clear separation between the administrative and medical functions of the business. In certain cases, if state law does not require a management agreement, Dermani Medspa may offer a waiver, but the final decision rests with the franchisor.
For prospective franchisees, this means that they must either be a licensed medical professional themselves or establish a relationship with a qualified PC to provide medical services. This requirement adds complexity to the business setup and necessitates legal and professional guidance to ensure compliance. Franchisees should carefully review the Management Agreement and any potential waivers with their legal counsel to understand their obligations and the division of responsibilities between themselves and the PC.