What happens to a Dermani Medspa franchise in the event of the franchisee's death or disability?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
A. Franchise Agreement
| 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. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–58)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the handling of a franchise in the event of the franchisee's death or disability depends on whether the franchisee has a standard Franchise Agreement or an Area Development Agreement (ADA).
For a standard Franchise Agreement, the franchisee's estate is required to transfer the franchise interest to a Dermani Medspa-approved third party within 12 months of the death or disability. Additionally, within 30 days of the death or disability, the estate must appoint a manager, and within 90 days, an Operating Principal must be appointed to oversee the business.
Under an Area Development Agreement, the franchisee's estate must transfer the business interest to a Dermani Medspa-approved third party within one year of the death or disability. The estate is also required to appoint a manager to fulfill the obligations under the ADA within 30 days of the death or disability. This ensures continuity of operations and adherence to the franchise agreement even in unforeseen circumstances.