What is the Dermani Medspa franchisee required to do regarding all applicable laws and regulations?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
ndustry-Specific Regulations**
You must comply with all local, state, and federal laws that apply to your Franchised Business and the dermani MEDSPA®. The medical industry is heavily regulated. These laws may include federal, state and local regulations, as well as state professional licensing board rules, relating to: the practice of medicine and the operation and licensing of medical services; the relationship of providers and suppliers of health care services, on the one hand, and physicians and clinicians, on the other, including anti-kickback laws such as the Federal Medicare Anti-Kickback Statute and similar state laws; restrictions or prohibition on fee splitting; physician self-referral restrictions; privacy of client records (including the Health Insurance Portability and Accountability Act of 1996, or HIPAA); use of medical devices; and advertising of medical services. While not all of these laws and regulations will be applicable to all dermani MEDSPA®s due to their locations, it is important to be aware of the regulatory framework.
You must secure and maintain in force all required licenses, permits and certificates relating to the operation of the Franchised Business and the other licenses applicable to the dermani MEDSPA® and its employees. You must not employ any person in a position that requires a license unless that person is currently licensed by all applicable authorities and a copy of the license or permit is in your business files.
You must comply with all state and local laws and regulations regarding the management of a medical office.
You must also make sure that your relationship with the PC for which you manage the dermani MEDSPA® complies with all laws and regulations, and that the PC secures and maintains in force all required licenses, permits and certificates relating to the operation of a dermani MEDSPA®. Each state has medical, nursing, physician assistant, cosmetology, naturopathic, chiropractic and/or other boards that determine rules and regulations regarding their respective members and the scope of services that may legally be offered by their members. The laws and regulations generally include requirements for the medical providers to hold required state licenses and registrations to work as (as applicable) physicians, nurse practitioners, and physician assistants in the state where the dermani MEDSPA® is located, and to hold required certifications by, or registrations in, any applicable professional association or registry.
If we grant you the right to operate a Franchised Business, we are not engaging in the practice of medicine, nursing or any other profession that requires specialized training or certification, and you must not engage in the practice of medicine, nursing, or any other profession that requires specialized training or certification, subject to the exception described below. The Franchise Agreement and Management Agreement will not interfere, affect or limit the independent exercise of medical judgment by the PC and its medical staff. You must research all applicable laws, and we strongly advise that you consult with an attorney and/or contact local, state and federal agencies before signing a Franchise Agreement with us, or a Management Agreement with a PC, to determine your legal obligations and evaluate the possible effects on your costs and operations.
In addition, you must operate the Franchised Business in full compliance with all applicable laws, ordinances and regulations, including government regulations relating to occupational hazards, health, EEOC, OSHA, discrimination, employment, sexual harassment, worker's compensation and unemployment insurance and withholding and payment of federal and state income taxes, social security taxes and sales and service taxes. You should consult with your attorney concerning those and other local laws and ordinances that may affect the operation of your Franchised Business.
Waiver of Management Agreement
In certain states, it may be permissible under the existing laws that may be applicable to medical practices and/or medical centers for one entity to both manage and operate the dermani MEDSPA®, including hiring any medical and professional personnel and providing medical services to clients at the dermani MEDSPA®. If you determine that the laws that would apply to a dermani MEDSPA® in your state would permit you to do so, you may request that we waive certain requirements of the Franchise Agreement related to separating the operation of the medical aspects of the dermani MEDSPA® from the management aspects.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, franchisees must comply with all local, state, and federal laws applicable to their franchised business. The medical industry is heavily regulated, and these laws may include regulations related to the practice of medicine, operation and licensing of medical services, relationships between healthcare providers and physicians, anti-kickback laws, fee splitting restrictions, physician self-referral restrictions, privacy of client records (including HIPAA), use of medical devices, and advertising of medical services. Franchisees must also secure and maintain all required licenses, permits, and certificates for operating the franchised business and ensure all employees are appropriately licensed.
Furthermore, franchisees must comply with all state and local laws and regulations regarding the management of a medical office. They must also ensure that their relationship with the Professional Corporation (PC) complies with all laws and regulations, and that the PC secures and maintains all required licenses, permits, and certificates. Each state has boards that determine rules and regulations regarding their respective members and the scope of services that may legally be offered by their members. These laws generally include requirements for medical providers to hold required state licenses and registrations to work as physicians, nurse practitioners, and physician assistants, and to hold required certifications by any applicable professional association or registry.
In states where it is permissible for one entity to both manage and operate the Dermani Medspa, including providing medical services, franchisees may request a waiver of certain requirements related to separating the operation of the medical aspects from the management aspects. However, any waiver or modification of standards is subject to compliance with all applicable laws and regulations. If a waiver is granted, the franchisee must operate the Dermani Medspa and manage it as required in the Franchise Agreement, performing all responsibilities and obligations of both the "PC" and the "Company" under the Management Agreement. As part of the Waiver of Management Agreement, the franchisee must represent that they have consulted with an attorney experienced in medical and healthcare laws and regulations in their state and have been advised that they may operate the franchised business and the Dermani Medspa as one entity.