Where must a Dermani Medspa franchisee maintain all records?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4. Governing Documents. If you are a corporation, partnership, LLC, or LLP, or transfer this Agreement to a corporation, partnership, LLC, or LLP, then, upon our request, you must provide to us a list of holders of direct or indirect equity interests and their percentage interests, as well as copies of your governing documents and any other corporate documents, books, or records. The Owners may not enter into any shareholders' agreement, management agreement, voting trust or other arrangement that gives a third party the power to direct and control your affairs without our prior written consent. Throughout the Term of this Agreement, your governing documents (and those of your ultimate parent) must provide that no transfer of any ownership interest may be made except in accordance with Section 7 of this Agreement and Section 12 of the Franchise Agreement. Any securities that you issue must bear a conspicuous printed legend to that effect.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
Based on the 2025 Dermani Medspa Franchise Disclosure Document, Item 5.4 addresses the requirements for governing documents if the franchisee is a corporation, partnership, LLC, or LLP. In such cases, Dermani Medspa may request a list of holders of direct or indirect equity interests, their percentage interests, and copies of the entity's governing documents, books, or records. These records must be provided to the franchisor, Dermani Medspa Franchising LLC, upon request.
This means that if a franchisee operates under a corporate structure, they must maintain detailed records of ownership, equity, and all governing documents. Dermani Medspa retains the right to request these documents, ensuring compliance and transparency within the franchise system.
The FDD does not explicitly state where the franchisee must maintain these records, only that they must provide them to the franchisor upon request. It would be prudent for a prospective franchisee to clarify with Dermani Medspa where they prefer these records to be stored and what format they should be in to ensure compliance with their requirements.