What happens to the Dermani Medspa franchise agreements if LazCoz loses its rights to the marks?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Our right to use and license others to use the Proprietary Marks is exercised under a trademark license agreement (the "TM Agreement") with LazCoz dated April 22, 2019. Under the TM Agreement, we are granted the right to use and to permit others to use the Marks. The TM Agreement has a 20-year term, with automatic 1-year renewal terms. If we were ever to lose our right to the Marks, LazCoz is required under the TM Agreement to allow our franchisees to maintain their rights to use the Proprietary Marks in accordance with their franchise agreements. Also, the franchise agreements will be assigned to LazCoz. Other than the TM Agreement, there are no agreements in effect which significantly limit our rights to use or license the Marks in any state in a manner material to dermani MEDSPA® franchises.
Source: Item 13 — TRADEMARKS, SERVICE MARKS, TRADE NAMES, LOGOTYPES, AND COMMERCIAL SYMBOLS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, if LazCoz loses its rights to the trademarks, LazCoz is required to allow Dermani Medspa franchisees to maintain their rights to use the proprietary marks in accordance with their franchise agreements. Additionally, the franchise agreements will be assigned to LazCoz. This is based on a trademark license agreement between Dermani Medspa and LazCoz, effective as of April 22, 2019.
This arrangement protects franchisees by ensuring they can continue operating under the Dermani Medspa brand even if the parent company's trademark rights are compromised. The assignment of franchise agreements to LazCoz further solidifies this protection, providing a clear path for continued operation.
This type of provision is relatively common in franchising, as it mitigates risks associated with trademark disputes or changes in ownership. Prospective Dermani Medspa franchisees should view this as a positive aspect of the franchise agreement, as it provides a safety net in potentially disruptive circumstances.