What happens if a Dermani Medspa franchisee does not comply with the non-competition covenants during the term of the franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | Article 7 | Includes a prohibition on engaging in Competitive Business, including any medspa, medical care center, or business that offers or provides laser hair removal, skin rejuvenation, chemical peels, body contouring/skin tightening, microneedling, dermaplaning, or injections for a medical center, medical care practice management business, or any other product or service or management service that is similar to the services and products or servicesauthorizedtobeofferedorsoldunderthe |
| Provision | Section in Franchise Agreement | Summary Marks and the System. |
| f. Termination by us with | Section 8 | We may terminate your agreement with cause as |
| cause | described in (g)-(h) of this chart. (See Notes 1 and 3). | |
| g. “Cause” defined – curable defaults | Section 8.3 | Any other default not specified in Sections 8.1 or 8.2, such as a material failure to comply with other agreement terms. |
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, if a franchisee fails to comply with the non-competition covenants during the term of the franchise agreement, it constitutes a default under the agreement. The FDD outlines that Dermani Medspa may terminate the franchise agreement with cause if the franchisee materially fails to comply with the terms of the agreement.
The non-competition covenant during the franchise term prohibits franchisees from engaging in any Competitive Business, including medspas, medical care centers, or businesses that offer services like laser hair removal, skin rejuvenation, chemical peels, body contouring/skin tightening, microneedling, dermaplaning, or injections. It also includes prohibitions related to medical center or medical care practice management businesses, or any similar product, service, or management service authorized to be offered or sold under the Dermani Medspa Marks and System.
Therefore, if a Dermani Medspa franchisee violates these non-competition terms during the franchise term, Dermani Medspa has grounds to terminate the franchise agreement. This could result in the franchisee losing their business and the rights associated with the Dermani Medspa franchise. Franchisees should carefully review and adhere to these non-competition covenants to avoid potential termination of their franchise agreement.