Does the Dermani Medspa franchisor have the power to influence the employment terms of my employees?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
ou understand and agree that you are and will be an independent contractor under this Agreement. Nothing in this Agreement may be interpreted as creating a partnership, joint venture, agency, employment or fiduciary relationship of any kind. Your employees are not our employees. Neither you nor any of your employees whose compensation you pay may in any way, directly or by implication, shall be considered our employee for any purpose, regardless of inclusion in mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. We do not, and will not, have the power to hire or terminate the employment of your employees. You expressly agree, and will never claim otherwise, that our authority under this Agreement does not directly or indirectly vest in us the power to influence the employment terms of any such employee.
- 10.1.2. At all times during the term of this Agreement, you shall hold yourself out to the public as an independent contractor operating pursuant to this Agreement. You shall take such action as may be necessary to do so, including, without limitation, exhibiting a notice of that fact in a conspicuous place in your offices, the content of which we reserve the right to specify.
- 10.1.3. You hereby irrevocably affirm, attest, and covenant your understanding that your employees are employed exclusively by you and in no fashion are any such employee employed, jointly employed or co-employed by us.
- 10.1.4. We and you may not make any express or implied agreements, warranties, guarantees, or representations, or incur any debt, in the name or on behalf of the other or represent that our respective relationship is other than that of franchisor and developer. We will not be obligated for any damages to any person or property directly or indirectly arising out of the Development Schedule or the business you conduct under this Agreement.
11. COMPLIANCE WITH LAWS
- 11.1. Compliance with Laws. You shall comply with all federal, state, and local laws, rules, and regulations, including, without limitation, employment, labor, and wage and hour laws, tax laws, local operating regulations, medical, and corporate practice of medicine laws and regulations. You shall timely obtain and maintain any and all permits, certificates, or licenses necessary for the full and proper conduct of the Franchised Businesses and dermani MEDSPA®s contemplated under this Agreement.
- 11.2. Notification of Claims.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are considered independent contractors, and their employees are exclusively employed by them, not by Dermani Medspa. Franchisees are responsible for complying with all employment, labor, and wage laws. Dermani Medspa states that it and the franchisee cannot make any agreements or representations on behalf of each other, clarifying their relationship as franchisor and franchisee. Dermani Medspa will not be held liable for damages arising from the franchisee's business operations.
The franchise agreement includes a sample employee agreement that contains a non-compete clause. Dermani Medspa does not require franchisees to include this clause in their employee agreements; the decision to include and enforce it is solely up to the franchisee. The FDD states that if the franchisee chooses to include this clause, it does not imply that Dermani Medspa is an employer of the franchisee's employees.
While Dermani Medspa does not directly dictate employment terms, franchisees must operate their business in accordance with the System Standards, which Dermani Medspa may modify periodically. These modifications could potentially affect operating costs and may indirectly influence staffing or operational decisions. Franchisees are required to implement these changes within the specified timeframe, as if they were part of the original agreement.