What is Dermani Medspa franchisees' obligation regarding advertising and promotion?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
standards and specifications, subject to your compliance with all applicable federal, state, and local laws and regulations in your Territory regarding the Special Programs. We reserve the right to establish and maintain a mystery shopper program or other compliance
assessment. If we establish such program(s), we may require you to pay for the costs and fees and such program(s).
9. MARKETING
9.1. Marketing Contributions and Expenditures; Participation in Marketing.
- 9.1.1. You acknowledge and recognize the value of the System and Marks, the need to develop, enhance, and promote the System and Marks, and the need to advertise and market the System and Medspas. You also acknowledge and recognize the importance of the standardization of advertising programs to the furtherance of the goodwill and public image of the System, Franchised Businesses and Medspas. Therefore, you agree to: (a) contribute to the System Marketing Fund, (b) make local advertising and marketing expenditures, and (c) join and make contributions to a Cooperative, if and when established.
- 9.1.2. We may from time to time develop and create advertising and sales promotion programs designed to promote and enhance the collective success of all dermani MEDSPA® franchised businesses operating under the System. You shall participate in all such advertising and sales promotion programs in accordance with the terms and conditions established by us for each program. In all aspects of these programs, including, without limitation, the type, quantity, timing, placement and choice of media, market areas and advertising agencies, the standards and specifications established by us shall be final and binding upon you.
- 9.1.3. We may, from time to time, incorporate into the System programs, products or services which we either develop or otherwise obtain rights to, which are offered and sold under names, trademarks and/or service marks other than the Marks and which your Franchised Business, along with other dermani MEDSPA® franchised businesses, will be required to offer and sell. This activity, referred to as "cobranding", may involve changes to the Marks and may require you to make modifications to your Premises and the furniture, fixtures, equipment, signs and trade dress of your Franchised Business. If you receive written notice that we are instituting a cobranding program, you agree promptly to implement that program at your Franchised Business at the earliest commercially reasonable time and to execute any and all instruments required to do so. Under no circumstance will any cobranding program increase your Royalty Fees, System Marketing Fee or local marketing expenditure obligations under this Agreement.
9.2. System Marketing Fund.
- 9.2.1. The image of the dermani MEDSPA® brand, the Marks, Franchised Businesses, and Medspas held by the public in general, by patients, and by Medspa managers and employees, is important to the System and the Marks. We reserve the right to establish a System Marketing Fund for the enhancement and protection of the dermani MEDSPA® brand and Marks, and for the advertising, marketing, and public relations programs and materials.
- 9.2.2. The System Marketing Fund, all contributions thereto, and any earnings thereon, shall be used exclusively (except as otherwise provided in this Section 9.2), in our sole discretion, to meet any and all costs of maintaining, administering, directing, conducting, creating and/or otherwise preparing advertising, marketing, public relations and/or promotional programs and materials, and any other activities which we believe will enhance the image of the System, including, without limitation, the costs of preparing and/or conducting: media advertising campaigns; social media campaigns; Paid per click campaigns; direct
mail advertising; marketing surveys and other public relations activities; employing advertising and/or public relations agencies to assist therein; brand research and development; developing and hosting marketing, brand development and enhancement, and customer engagement seminars for franchisees; purchasing promotional items; developing new or modified trade dress and marks; point-of-purchase (POP) materials; design and photographs; conducting and administering visual merchandising, and other merchandising programs; purchasing media space or time (including all associated fees and expenses); administering regional and multi-regional marketing and advertising programs; market research and customer satisfaction surveys; developing and implementing customer membership, loyalty and gift card programs; customer retention programs; customer surveys and mystery shopper programs; the creative development of, and actual production associated with, premium items, giveaways, promotions, contests, public relation events, and charitable or non-profit events; developing, implementing and maintaining an electronic commerce website and/or related strategies; maintaining and developing one or more Websites devoted to the System, the Proprietary Marks and/or the "dermani MEDSPA®" brand; and providing promotional and other marketing materials and services to the Medspas operated under the System. The System Marketing Fund may also be used to provide rebates or reimbursements to franchisees for local expenditures on products, services, or improvements, approved in advance by us, which products, services, or improvements we shall have the right to determine will promote general public awareness and favorable support for the System.
9.2.3. We will account for the System Marketing Fund separately from our other funds and monies and not use the System Marketing Fund for any of our general operating expenses. However, we may use the System Marketing Fund to pay administrative costs of the System Marketing Fund including managing the advertising, marketing, and promotional programs and payment of outside suppliers or vendors utilized by the System Marketing Fund, and we may use the System Marketing Fund to pay the reasonable salaries and benefits of personnel (including our personnel) who manage and administer the System Marketing Fund. We may use the System Marketing Fund to pay for other administrative costs, travel expenses of personnel while they are on System Marketing Fund business, meeting costs, overhead concerning System Marketing Fund business, and other expenses that we incur in activities reasonably related to administering or directing the System Marketing Fund and its programs. We may use money from the System Marketing Fund for collecting the System Marketing Fee (including attorneys', auditors' and accountants' fees and other expenses incurred in connection with collecting any System Marketing Fee). If we use a portion of the System Marketing Fund toward the cost to develop and maintain one or more Websites, any of them may have a section relating to our franchise opportunity, and all advertising and promotional materials may reflect the availability of dermani MEDSPA® franchises. Otherwise, we do not use System Marketing Fund monies for advertising that is principally a solicitation for the sale of franchises.
9.2.4. The System Marketing Fund will not be our asset. Although the System Marketing Fund is not a trust, we will hold all System Marketing Fund contributions for the benefit of the System, the dermani MEDSPA® brand, and the contributors, and use contributions only for the purposes described in this Section 9.2. We do not owe any fiduciary obligation to you for administering the System Marketing Fund or any other reason. The System Marketing Fund may spend in any fiscal year more or less than the total System Marketing Fund contributions in that year, borrow from us or others (paying reasonable interest) to cover deficits, or invest any surplus for future use. We will use all interest earned on System Marketing Fund contributions to pay costs before using the System Marketing Fund's other assets.
9.2.5. We will prepare an annual, unaudited statement of System Marketing Fund collections and expenses. The statement is available for your review upon written request, one hundred twenty (120) days after our fiscal yearend. We may have the System Marketing Fund audited annually, at the System Marketing Fund's expense, by an independent certified public accountant. We may incorporate the System Marketing Fund or operate it through a separate entity whenever we deem appropriate. The successor entity will have all of the rights and duties specified in this Section.
9.2.6.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees have several obligations related to advertising and promotion. Franchisees must acknowledge the importance of the Dermani Medspa system and marks, and the need to advertise and market the system and Medspas. Franchisees must contribute to the System Marketing Fund, make local advertising and marketing expenditures, and join and contribute to a Cooperative, if established. Dermani Medspa may develop advertising and sales promotion programs, and franchisees must participate in these programs according to the terms set by Dermani Medspa. Franchisees are required to offer and sell co-branded programs, products, or services that Dermani Medspa develops or obtains rights to, which may involve changes to the Marks or modifications to the premises.
Franchisees are obligated to spend a minimum of $20,000 for a grand opening marketing program, commencing at least 60 days prior to opening and concluding within 60 days of opening, according to a plan developed or approved by Dermani Medspa. Dermani Medspa can designate a different time period for the Grand Opening Marketing Program and requires approval of the program before it is conducted. Dermani Medspa can request the money for the Grand Opening Marketing Program and conduct it on the franchisee's behalf or require direct payment to a designated vendor. After the grand opening, franchisees must spend a minimum of $500 each month on local marketing and promotion.
Franchisees are restricted in promoting their Medspa on websites or social media pages without Dermani Medspa's prior written consent. Dermani Medspa may require franchisees to establish and maintain social media pages or profiles, complying with Dermani Medspa's System Standards. Dermani Medspa reserves the right to use designated or approved suppliers for social media management and conduct collective/national campaigns via local social media on the franchisee's behalf. Dermani Medspa retains sole ownership of copyrights to all material on websites or social media pages they establish and maintain.
Franchisees may be required to contribute to a Cooperative, if established, in an amount agreed upon by the members or prescribed by Dermani Medspa. Funds contributed to a Cooperative will be credited against the franchisee's local marketing obligation. The Cooperative must be organized and governed in a manner approved by Dermani Medspa, with activities decided by a majority vote of its members. The Cooperative's purpose is to administer advertising programs and develop standardized promotional materials, subject to Dermani Medspa's approval.
Dermani Medspa reserves the right to establish a System Marketing Fund for the enhancement and protection of the Dermani Medspa brand and Marks, and for advertising, marketing, and public relations programs and materials. The System Marketing Fund will be used exclusively to meet the costs of these activities, including media advertising campaigns, social media campaigns, and direct mail campaigns. Dermani Medspa or its affiliates operating Dermani Medspas will contribute to the System Marketing Fund at the same rate as franchisees. Dermani Medspa is not obligated to spend or perform any national branding efforts in a franchisee's particular market.