What geographic restrictions apply to a Dermani Medspa member during the Post-Term Period?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 Dermani Medspa's 2025 Franchise Disclosure Document, during the Post-Term Period, a member is restricted from involvement in a Competitive Business. This includes owning, maintaining, operating, engaging in, managing, franchising, or licensing a Competitive Business. It also includes being a partner, director, manager, employee, consultant, representative, or agent in any Competitive Business.
The geographic scope of this restriction covers businesses located within the Development Area granted to the member. Additionally, the restriction extends to any Competitive Business located within a five-mile radius of the border of the Development Area. It also applies to any other Dermani Medspa operating at the time the obligations commence.
This restriction prevents former members from directly competing with Dermani Medspa within a defined geographic area after their agreement ends. This is a common practice in franchising to protect the brand and existing franchisees from unfair competition by those who have gained knowledge and experience within the Dermani Medspa system. Prospective franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area after the franchise agreement expires or is terminated.