What is the Dermani Medspa franchisee required to do with the Waiver of Management Agreement?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
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. In particular, depending upon the applicable laws and circumstances, you may not be required to enter into a management agreement with a PC, or be restricted from directly employing Affiliated Physicians. Any waiver or any modification of our standards would be subject to compliance with all applicable laws and regulations. If we agree to a waiver, you must enter into our "Waiver of Management Agreement" (which is Exhibit L to this Disclosure Document). Under the Waiver of Management Agreement, you agree that, instead of entering into the Management Agreement with a separate PC, you will (a) operate the dermani MEDSPA®, including performing all responsibilities and obligations of the "PC" under the Management Agreement, and (b) manage the dermani MEDSPA® as required in the Franchise Agreement and by performing all the responsibilities and obligations of the "Company" under the Management Agreement. As part of this Waiver of Management Agreement, you must represent that you have consulted with an attorney with experience in medical and health care laws and regulations in your state, and she or he has advised you that you may operate the Franchised Business
and the dermani MEDSPA® as one entity. If you qualify to enter into the Waiver of Management Agreement, we will make the final determination whether we will permit the waiver or not.
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, the Waiver of Management Agreement comes into play when a franchisee operates in a state where one entity is allowed to both manage and operate the Dermani Medspa, including hiring medical personnel and providing medical services. If a franchisee determines that their state's laws permit this, they can request a waiver of certain requirements in the Franchise Agreement that separate the medical and management aspects of the business.
If Dermani Medspa agrees to the waiver, the franchisee must enter into the "Waiver of Management Agreement," which is Exhibit L to the FDD. Under this agreement, the franchisee agrees to operate the Dermani Medspa, fulfilling all responsibilities and obligations of the "PC" (professional corporation) under the standard Management Agreement. They also agree to manage the medspa as required in the Franchise Agreement, performing all responsibilities of the "Company" as outlined in the Management Agreement.
As part of the Waiver of Management Agreement, the franchisee must confirm they've consulted with an attorney experienced in medical and healthcare laws in their state, and that the attorney has advised them they can operate the franchised business as a single entity. Even if the franchisee meets these qualifications, Dermani Medspa retains the final decision on whether to grant the waiver. This ensures that all franchisees, even those operating under a waiver, comply with the brand's standards and all applicable laws.