Must a Dermani Medspa franchisee comply with the then-current qualification and training requirements to renew?

According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees may need to meet then-current requirements if they are granted a successor term under specific legal conditions. Dermani Medspa can refuse to execute a Successor Franchise Agreement if the franchisee's lease isn't extended to cover the successor term or if there's no written commitment from the landlord to renew the lease. Additionally, refusal can occur if the franchisee fails to comply with the current agreement terms, doesn't pay owed amounts, or fails to correct defaults from the initial term.

However, even if Dermani Medspa declines to grant a successor term, a law, rule, regulation, statute, ordinance, or legal order might require them to do so. In such cases, the successor term will be subject to the conditions of the then-current franchise agreement that Dermani Medspa uses for new franchisees at the time the successor period begins, to the extent allowed by the applicable law. If Dermani Medspa is not offering new franchises at that time, the successor period will be subject to the terms in the then-current franchise agreement that Dermani Medspa indicates. If that is not allowed for any reason, the successor term will be governed by the terms of the original agreement.

This means that while Dermani Medspa generally has the discretion to set conditions for renewal, external legal factors could force them to grant a successor term. If this happens, the franchisee might have to comply with updated franchise agreement terms, including potential new qualification and training requirements. A prospective franchisee should discuss with Dermani Medspa under which specific circumstances a renewal is possible and what conditions would apply.