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What happens if I use my own construction contractor for the Dermani Medspa buildout?

Dermani_Medspa Franchise · 2025 FDD

Answer from 2025 FDD Document

Likewise, we require you to either use our designated construction contractor when you are building out your dermani MEDSPA®, or, if you use your own contractor, then you must use our designated contractor to oversee your buildout.

The low estimate assumes that you will use our designated real estate broker and contractor.

The high estimate assumes that you will use your own real estate broker and contractor, and therefore pay our designated real estate broker and contractor additional fees for their services.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)

What This Means (2025 FDD)

According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees have the option to use their own construction contractor for the buildout of their medspa. However, if a franchisee chooses to use their own contractor, they are also required to hire Dermani Medspa's designated construction contractor to oversee the buildout process.

The FDD indicates that the estimated initial investment varies depending on whether you use Dermani Medspa's designated contractor or your own. The low estimate in the initial investment table assumes the use of Dermani Medspa's designated contractor, while the high estimate assumes you will use your own contractor and pay additional oversight fees to Dermani Medspa's designated contractor. For 'Site Selection and Construction Oversight' the estimated low amount is $0 and the estimated high amount is $5,000. This oversight is 'as agreed' and 'as incurred' and is paid to 'suppliers'.

This requirement to use Dermani Medspa's designated contractor for oversight, even when using your own contractor, could increase your initial investment. It is important for prospective franchisees to understand the specific fees charged by Dermani Medspa's designated contractor for oversight services and factor those costs into their financial projections. Franchisees should also inquire about the qualifications and experience of the designated contractor to ensure they can provide effective oversight of the buildout process. This dual-contractor system is not typical in franchising, so it merits careful scrutiny.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.