What geographic areas are covered by the non-competition covenants after termination or expiration of a Dermani Medspa franchise?

Question

Accepted Answer

| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
|  |  | to you and without restriction. |
| k. “Transfer” by you – defined | Section 12.2 | Includes any sale, assignment, gift, conveyance, pledge, mortgage or other encumbrance or disposition of any interest in the Franchise Agreement, the Franchised Business or you (if you are not a natural person). |
| l. Our approval of transfer by you | Section 12.3 | You may not transfer the Franchise Agreement without our prior written consent. We will not unreasonably withhold our consent. Our consent to a transfer is not a waiver of any claims we have against you. |
| m. Conditions for our approval of transfer | Section 12.3 | Your full compliance with the Franchise Agreement; our approval of transferee; you are current in fees owed to us; transferee signs then-current franchise agreement; payment of transfer fee; release signed; you comply with non-competition covenants; all obligations to us satisfied; and others. |
| n. Our right of first | Section 12.6 | We have the right of first refusal if you determine to sell |
| refusal to acquire your |  | or transfer your interest in the franchisee, the Franchise |
| business |  | Agreement or the Franchised Business. |
| o. Our option to purchase your business | Section 15.5 | Upon termination or expiration of the Franchise Agreement, we have the right to purchase all or a portion of the assets of your Franchised Business at their fair market value. |
| p. Your death or disability | Section 12.5 | Your estate must transfer your interest in the Franchised Business to a third party we approve within 12 months after death or disability. Your estate must appoint a manager within 30 days of death or disability and an Operating Principal within 90 days after death or disability |
| q. Non-competition covenants during the term of the franchise | Article 7 | Includes a prohibition on engaging in Competitive Business, including any medspa, medical care center, or business that offers or provides laser hair removal, skin rejuvenation, chemical peels, body contouring/skin tightening, microneedling, dermaplaning, or injections for a medical center, medical care practice management business, or any other product or service or management service that is similar to the services and products or servicesauthorizedtobeofferedorsoldunderthe |
| Provision | Section in Franchise Agreement | Summary Marks and the System. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 15.4 | Includes a two year prohibition on a Competitive Business at the Premises, within the Territory, within five miles of the border of the Territory, or within the Territory of other Franchised Businesses in operation or under construction.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–58)

What geographic areas are covered by the non-competition covenants after termination or expiration of a Dermani Medspa franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Provision	Section in Franchise Agreement	Summary
		to you and without restriction.
k. “Transfer” by you – defined	Section 12.2	Includes any sale, assignment, gift, conveyance, pledge, mortgage or other encumbrance or disposition of any interest in the Franchise Agreement, the Franchised Business or you (if you are not a natural person).
l. Our approval of transfer by you	Section 12.3	You may not transfer the Franchise Agreement without our prior written consent. We will not unreasonably withhold our consent. Our consent to a transfer is not a waiver of any claims we have against you.
m. Conditions for our approval of transfer	Section 12.3	Your full compliance with the Franchise Agreement; our approval of transferee; you are current in fees owed to us; transferee signs then-current franchise agreement; payment of transfer fee; release signed; you comply with non-competition covenants; all obligations to us satisfied; and others.
n. Our right of first	Section 12.6	We have the right of first refusal if you determine to sell
refusal to acquire your		or transfer your interest in the franchisee, the Franchise
business		Agreement or the Franchised Business.
o. Our option to purchase your business	Section 15.5	Upon termination or expiration of the Franchise Agreement, we have the right to purchase all or a portion of the assets of your Franchised Business at their fair market value.
p. Your death or disability	Section 12.5	Your estate must transfer your interest in the Franchised Business to a third party we approve within 12 months after death or disability. Your estate must appoint a manager within 30 days of death or disability and an Operating Principal within 90 days after death or disability
q. Non-competition covenants during the term of the franchise	Article 7	Includes a prohibition on engaging in Competitive Business, including any medspa, medical care center, or business that offers or provides laser hair removal, skin rejuvenation, chemical peels, body contouring/skin tightening, microneedling, dermaplaning, or injections for a medical center, medical care practice management business, or any other product or service or management service that is similar to the services and products or servicesauthorizedtobeofferedorsoldunderthe
Provision	Section in Franchise Agreement	Summary Marks and the System.
r. Non-competition covenants after the franchise is terminated or expires	Section 15.4	Includes a two year prohibition on a Competitive Business at the Premises, within the Territory, within five miles of the border of the Territory, or within the Territory of other Franchised Businesses in operation or under construction.