What happens if a Dermani Medspa developer fails to satisfy the Development Schedule?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
rules that we prescribe for the management and operation of the Franchised Business and dermani MEDSPA®.
The definitions provided above are in addition to other defined terms set forth in this Agreement.
1. GRANT OF DEVELOPMENT RIGHTS; TERRITORY
- 1.1. Grant of Development Rights. Pursuant to the terms and conditions of this Agreement, we hereby grant to you the right, and you accept the obligation, to develop a specified number of Franchised Businesses in the Development Area, as set forth Exhibit A attached hereto. In this regard, you further agree:
- 1.1.1. To develop the Franchised Businesses and dermani MEDSPA®s pursuant to the development schedule set forth in Paragraph 3 of Exhibit A attached hereto (the "Development Schedule"). 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;
- 1.1.2. that each dermani MEDSPA® developed under this Agreement must be established and managed by a Franchised Business pursuant to a separate dermani MEDSPA® Franchise Agreement (a "Franchise Agreement") that must be executed as provided in Section 3.1 below;
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, if a 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 deadlines for opening Dermani Medspa locations within the designated Development Area.
This means that Dermani Medspa can choose to terminate the Area Development Agreement if the developer does not adhere to the agreed-upon timeline for opening new locations. This could result in the developer losing the rights to develop further Dermani Medspa franchises in the designated area. It is important to note that Dermani Medspa is not obligated to terminate the agreement, giving them some flexibility depending on the circumstances of the missed deadlines.
Prospective Dermani Medspa developers should carefully review the Development Schedule in Exhibit A and Section 8 of the Area Development Agreement to fully understand their obligations and the potential consequences of failing to meet those obligations. They should also assess their ability to meet the deadlines outlined in the Development Schedule before entering into the agreement. It is also important to note 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 the developer's obligations in the Area Development Agreement.