What is the geographic scope of the non-compete restriction for 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, a member is restricted from engaging in any Competitive Business during the Post-Term Period within the Development Area or within a five-mile radius of the border of the Development Area, or near any other Dermani Medspa operating at the time.
This means that after the Area Development Agreement ends, a member cannot directly or indirectly own, operate, manage, franchise, or have any ownership interest in a business that offers similar medical spa products or services as Dermani Medspa within the specified geographic area. This restriction also applies to being a partner, director, manager, employee, consultant, representative, or agent in any such Competitive Business.
The geographic scope of the non-compete is limited to the Development Area and a five-mile radius around it, as well as any area where another Dermani Medspa is operating. This restriction is designed to protect Dermani Medspa's market and prevent former members from using the knowledge and experience gained during their association with Dermani Medspa to compete against it in the immediate vicinity.
Prospective franchisees should carefully consider the implications of this non-compete agreement, particularly if they plan to remain in the same geographic area after the termination of their Area Development Agreement. It is important to understand the exact boundaries of the Development Area and the location of other Dermani Medspa locations to fully assess the potential impact of this restriction.