When must a Dermani Medspa franchisee submit their required contribution to the Cooperative?

According to Dermani Medspa's 2025 Franchise Disclosure Document, a franchisee must submit their required contribution to the Cooperative at the same time as payments are required for royalties and the System Marketing Fee. This payment must be accompanied by any statements and reports that Dermani Medspa or the Cooperative may require, with Dermani Medspa's written approval. Dermani Medspa also reserves the right to request that franchisees submit their payments and reports for the Cooperative directly to them, and Dermani Medspa will then distribute the money and reports to the Cooperative.

Currently, there are no Cooperatives in existence as of the issuance date of the 2025 disclosure document. However, Dermani Medspa has the discretion to create a Cooperative in any area or approve the creation of one, establishing the rules and regulations for each Cooperative. If a Cooperative is formed for the area in which a Dermani Medspa franchise is located, membership and contribution to the Cooperative may become mandatory.

This means that if a Cooperative is established in the franchisee's area, the franchisee will need to budget for these additional contributions and ensure timely payments to avoid any penalties or disruptions to their franchise operations. It is also important to note that any funds contributed to a Cooperative will be credited against the franchisee's local marketing obligation. However, if the contributions to a Cooperative are less than the local marketing requirement, the franchisee must still spend the difference locally.