Must all franchise agreements be transferred to the same transferee for Dermani Medspa to approve a transfer?
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.
- 7.2.2. In this Agreement, the term "transfer" includes a voluntary or involuntary, direct or indirect, assignment, sale, gift, or other disposition. An assignment, sale, gift, or other disposition includes the following events:
- a) transfer of ownership of capital stock, a partnership or membership interest, or another form of ownership interest;
- b) merger or consolidation or issuance of additional securities or other forms of ownership interest;
- c) any sale of a security convertible to an ownership interest;
- d) transfer of an interest in you, this Agreement, any Franchise Agreement(s), the Franchised Business(es), or substantially all of your assets, or your owners in a divorce, insolvency, or entity dissolution proceeding or otherwise by operation of law; or
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, a transfer of the franchise agreement can only occur with the transfer of the Franchised Business's ownership, possession, control, or substantially all of its assets. Dermani Medspa emphasizes that the rights and duties created by the agreement are personal to the franchisee, and the grant to develop Franchised Businesses and manage Dermani Medspas is based on the franchisor's perception of the franchisee's character, skills, aptitude, business ability, and financial capacity.
Therefore, any transfer of the agreement, franchise agreements, franchised business, leases, mortgages, or ownership interest in the franchisee requires prior written approval from Dermani Medspa. The term "transfer" is broadly defined to include voluntary or involuntary assignments, sales, gifts, or other dispositions, including changes in ownership, mergers, consolidations, or transfers of interest due to various circumstances like divorce or insolvency.
This policy ensures that Dermani Medspa maintains control over who operates its franchises and upholds its brand standards. It also protects the franchisor's interests by ensuring that any new franchisee meets their criteria for success and is capable of fulfilling the obligations of the franchise agreement. For a prospective franchisee, this means that selling the business or transferring ownership requires a formal process with Dermani Medspa's approval, and the new owner will need to meet the franchisor's standards.