What geographic areas are included in the Dermani Medspa non-compete agreement?
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;
(iii) divert or attempt to divert any actual or potential business or customer of the Franchised Business to a Competitive Business; or
(iv) In any manner interfere with, disturb, disrupt, impair, diminish, or otherwise jeopardize our business or that of our affiliates or any of our developers or franchisees.
(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 cannot engage in a Competitive Business. This restriction applies wherever such a business is located or operating. They also cannot divert business from the Franchised Business to a Competitive Business or interfere with Dermani Medspa's business or its affiliates.
After the Area Development Agreement concludes (the Post-Term Period), the member is restricted from involvement in a Competitive Business within the Development Area or within a 5-mile radius of the Development Area's border, or near any other operating Dermani Medspa at that time.
These non-compete clauses aim to protect Dermani Medspa's market and confidential information by preventing members from using their knowledge and resources to compete with the franchise during and after their agreement. Prospective franchisees should carefully consider the geographic scope and duration of these restrictions, as they could significantly limit their business opportunities after leaving the Dermani Medspa system.