What happens if Dermani Medspa modifies a covenant, and what is the Dermani Medspa franchisee's obligation?

According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa periodically may modify System Standards. These modifications may require a franchisee to invest additional capital in their franchised business and/or incur higher operating costs.

The Dermani Medspa franchisee agrees to implement any changes in System Standards within the time period that Dermani Medspa requests. These changes may involve refurbishing or remodeling the premises or any other aspect of the franchised business, buying new operating assets, adding new services, or otherwise modifying the nature of operations, as if they were part of the agreement as of the effective date.

This means that Dermani Medspa franchisees must be prepared to adapt their businesses to meet evolving System Standards, potentially incurring additional expenses for upgrades, new equipment, or operational changes. Franchisees should carefully consider the potential financial impact of these modifications and factor them into their business planning. It is important for prospective franchisees to discuss with Dermani Medspa the types of System Standard modifications that have been implemented in the past and the potential costs associated with future changes.