What happens if a Dermani Medspa area developer fails to satisfy the Development Schedule?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
If at any time during the term of this Agreement you fail to satisfy the Development Schedule, then we have the right, but not the obligation, to exercise our termination rights and other rights pursuant to Section 8 below;
Recognizing that time is of the essence, you agree to satisfy each deadline set forth in the Development Schedule in Exhibit A of this Agreement. Your failure to adhere to the Development Schedule will constitute a default under this Agreement as provided in Section 8.2 below. You acknowledge and agree that the time limits and time frames set forth in and inherent in the Development Schedule, and not those in the Franchise Agreement, will govern your obligations in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, if an area developer fails to meet the Development Schedule outlined in Exhibit A of the Area Development Agreement, Dermani Medspa has the right, but not the obligation, to exercise its termination rights and other rights as detailed in Section 8 of the agreement. The Development Schedule specifies the number of Franchised Businesses the area developer is obligated to develop within the designated Development Area.
Time is of the essence, and the area developer agrees to adhere to each deadline in the Development Schedule. Failure to do so constitutes a default under the Area Development Agreement, as specified in Section 8.2. The time limits and time frames set forth in the Development Schedule, rather than those in the Franchise Agreement, govern the area developer's obligations under the Area Development Agreement.
This means that a Dermani Medspa area developer must carefully review and understand the Development Schedule, as failing to meet these obligations can lead to termination of the agreement. Prospective area developers should assess their ability to meet the required deadlines for opening new locations within the designated territory. It is crucial to have a clear plan and resources in place to ensure compliance with the Development Schedule and avoid potential default and termination of the agreement.