What happens to Dermani Medspa's obligations, debts, or liabilities upon termination of the agreement?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1. Payment of Amounts Owed to Us. You agree to pay us, within fifteen (15) days after this Agreement expires or is terminated, the Royalty Fees, System Marketing Fees, interest, and all other amounts owed to us which then are unpaid.
- 15.2. Marks. When this Agreement expires or is terminated:
- 15.2.1. you may not directly or indirectly at any time or in any manner (except as we may otherwise approve, and except with respect to other Franchised Businesses Medspas you own and/or manage or as required by law, or as necessary to accurately respond to any inquiry, or as required by law, regarding your business operations prior to the expiration or termination) identify yourself or any business as a current or former Franchised Business or Medspa or as one of our current or former franchisees; use any Mark, any colorable imitation of a Mark, or other indicia of a Franchised Business or Medspa in any manner or for any purpose; or use for any purpose any trade name, trade or service mark, or other commercial symbol that indicates or suggests a connection or association with us;
- 15.2.2. you agree to take the action required to cancel all fictitious or assumed names or equivalent registrations relating to your use of the Marks;
- 15.2.3. you agree to deliver to us within thirty (30) days all signage, marketing materials, forms, and other materials containing any Mark or otherwise identifying or relating to a Franchised Business or Medspa that we request and allow us, without liability to you or third parties for trespass or any other claim, to enter the Premises and remove these items from the Franchised Business;
- 15.2.4. if we do not have or do not exercise an option to purchase the assets of the Franchised Business, you agree promptly and at your own expense to make the alterations we specify in our Manual (or otherwise) to distinguish the Franchised Business and the Premises clearly from its former appearance and from other Franchised Businesses and Medspas in order to prevent public confusion;
- 15.2.5. you agree to notify the telephone company, all telephone directory publishers, social media and other online listings (as necessary), and all domain name registries and internet service
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee is obligated to pay all outstanding amounts owed to Dermani Medspa within fifteen days. This includes any unpaid Royalty Fees, System Marketing Fees, interest, and any other outstanding debts. This means a franchisee must settle all financial obligations with the company promptly after the agreement ends.
Additionally, the franchisee must discontinue using Dermani Medspa's trademarks and other identifying marks, except as approved by Dermani Medspa or as required by law. The franchisee must also cancel any assumed names related to the use of Dermani Medspa's marks. Within thirty days of termination or expiration, the franchisee must deliver all signage, marketing materials, and other items containing Dermani Medspa's marks to the company. Dermani Medspa has the right to enter the premises and remove these items without liability.
If Dermani Medspa does not exercise its option to purchase the assets of the franchised business, the franchisee is responsible for altering the premises to clearly distinguish it from its former appearance and from other Dermani Medspa locations. This is to prevent public confusion. The franchisee must also notify the telephone company, directory publishers, social media platforms, and domain name registries to update listings and remove any association with Dermani Medspa.