Must a Dermani Medspa franchisee's lease be coterminous with the Franchise Agreement?

According to the 2025 Dermani Medspa FDD, Dermani Medspa can refuse to execute a Successor Franchise Agreement if the franchisee's lease, sublease, or other document that provides the right to occupy the premises is not extended to cover the period of the successor term. This also applies if the franchisee does not have a written commitment from their landlord to renew the lease or sublease for a period at least equal to the successor term. This condition ensures that the franchisee will have a secure location for the duration of the renewed franchise term.

This requirement protects Dermani Medspa's interests by ensuring that franchisees have a stable business location throughout the term of the franchise agreement. Without a lease that covers the franchise term, a franchisee could lose their location, disrupting operations and potentially harming the Dermani Medspa brand.

While the lease does not need to be coterminous with the initial Franchise Agreement, it must be extendable to cover any successor terms. This provides franchisees with the flexibility to negotiate lease terms that may not initially match the franchise term but still allows for renewal options that align with potential franchise extensions. Franchisees should carefully consider lease renewal options and communicate with their landlords to ensure they can meet this requirement if they seek a successor agreement with Dermani Medspa.