What geographic areas are covered by the Dermani Medspa covenant not to compete?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Member covenants and agrees that during the term of the Area Development Agreement, except as otherwise approved in writing by Franchisor, Member will not, either directly or indirectly, for him or herself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, or entity:
(i) develop, build, own, maintain, operate, manage, engage in, franchise, or license, or have any direct or indirect controlling or non-controlling interest as an owner – whether of record, beneficially, or otherwise – in medical spa centers or businesses that offer medical spa products or services substantially similar to those then offered by dermani MEDSPA®s ("Competitive Business");
(ii) be or perform services as a director, officer, manager, employee, consultant, representative, or agent for a Competitive Business, wherever located or operating;
(c) Member covenants and agrees that during the Post-Term Period (defined below), Member will not, either directly indirectly, own, maintain, operate, engage in, manage, franchise or license, or have any direct or indirect controlling or non-controlling interest as an owner (whether of record, beneficially, or otherwise) or be or perform services as a partner, director, manager, employee, consultant, representative, or agent in any Competitive Business, that is, or is intended to be, located within the Development Area, or within a five (5) mile radius of the boarder of the Development Area or any other dermani MEDSPA® operating at the time.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, during the term of the Area Development Agreement, a member is restricted from engaging in competitive business activities. This includes developing, owning, operating, or having any interest in medical spa centers or businesses offering similar products or services to Dermani Medspa. This restriction applies wherever the competitive business is located or operating. Members are also prohibited from working for a Competitive Business as a director, officer, manager, employee, consultant, representative, or agent, regardless of location.
Post-termination, the member is restricted from owning, operating, managing, or having any interest in a Competitive Business. This post-term restriction applies to businesses located within the Development Area or within a five-mile radius of the border of the Development Area, or any other Dermani Medspa operating at the time.
In summary, the non-compete clause has two distinct geographic scopes: During the Area Development Agreement term, the restriction applies to any Competitive Business regardless of its location. After the agreement terminates, the restriction is limited to the Development Area and a five-mile radius around it or any other operating Dermani Medspa.