Is a Dermani Medspa franchisee required to use Dermani Medspa's designated construction contractor?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
You must use our designated real estate broker to either be your real estate broker, or, if you elect to use your own real estate broker, then you must use our real estate broker to oversee your site selection process. If you use your own real estate broker, then you must still pay our designated broker their thencurrent fee in connection with providing their oversight services. Likewise, you must use our designated construction contractor to either be your contractor, or, if you elect to use your own contractor, then you must use our contractor to oversee your buildout. If you use your own contractor, then you must still pay our designated contractor their then-current fee in connection with providing their oversight services. We reserve the right to approve your real estate broker and construction contractor.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–28)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are not obligated to exclusively use Dermani Medspa's designated construction contractor. However, if a franchisee chooses to use their own contractor, they are still required to engage Dermani Medspa's designated contractor to oversee the buildout process. This oversight comes with a fee, which the franchisee must pay to the designated contractor.
This requirement ensures that all Dermani Medspa locations adhere to the brand's standards and specifications, even when franchisees opt for their own construction personnel. By mandating oversight from their designated contractor, Dermani Medspa maintains control over the buildout process, ensuring consistency and quality across all franchise locations. This can be beneficial for maintaining brand uniformity and preventing deviations from the established design and operational standards.
Dermani Medspa also retains the right to approve a franchisee's choice of real estate broker and construction contractor, further emphasizing their control over key aspects of the franchise setup. While franchisees have some flexibility in choosing their own contractors, the oversight requirement and approval process ensure that Dermani Medspa's standards are met, potentially adding to the overall cost of opening the franchise. Prospective franchisees should factor in these potential oversight fees when budgeting for their initial investment.
This type of arrangement, where a franchisor requires oversight from a designated contractor even when the franchisee uses their own, is not uncommon in the franchise industry. It allows the franchisor to maintain quality control and consistency while still providing some flexibility to the franchisee. However, it's crucial for prospective franchisees to understand the associated costs and obligations before signing the franchise agreement.