What happens if a Dermani Medspa franchisee misses a deadline in the Development Schedule?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
) or more of the equity in, the franchisee entity; and (c) you or your Operating Principal executes a guarantee, guaranteeing to us the timely payment and performance of the franchisee's obligations under the Franchise Agreement.
- 3.2. Franchise Agreements. Each dermani MEDSPA® must be located at a site approved by us in writing, within the Development Area, as provided in the Franchise Agreement (the "Premises"). The Franchise Agreement for the first (1st) Franchised Business developed hereunder will be in the form of the Franchise Agreement attached hereto as Exhibit D, and the Franchise Agreement for each additional Franchised Business developed hereunder will be the form of Franchise Agreement being offered generally by us at the time each such Franchise Agreement is executed.
- 3.3. Development Schedule. 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.
4. TERM
- 4.1. Term.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, failing to meet the deadlines outlined in the Development Schedule constitutes a default under the Area Development Agreement. Dermani Medspa emphasizes that adhering to the Development Schedule's timelines is crucial.
If a Dermani Medspa area developer fails to meet the milestones in the Development Schedule, Dermani Medspa has the right, but not the obligation, to terminate the Area Development Agreement. This means Dermani Medspa could end the agreement, taking away the developer's rights to open the agreed-upon number of locations in the designated area.
The term of the Area Development Agreement for Dermani Medspa will expire either when the last required medspa opens or on the final date specified in the Development Schedule, whichever comes first, unless the agreement is terminated earlier according to its terms. There is no automatic renewal or extension of the Area Development Agreement upon its expiration, unless both parties agree in writing to renew or extend the agreement.