What happens to the Transfer Fee if the Dermani Medspa franchise transfer is not consummated?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
You pay us a transfer fee ("Transfer Fee") equal to fifty percent (50%) of our then-current initial franchise fee for a single unit franchise, to reimburse us for reviewing the application to transfer, including, without limitation, legal and accounting fees.
One-half (½) of the Transfer Fee shall be paid at the time you submit your request to us for consideration of the proposed transfer, and such amount shall be non-refundable.
The balance of the Transfer Fee shall be paid at the time the transfer is consummated or closes.
If the transfer is not consummated after we have provided our approval for the proposed transfer, then we have the right to require that you or the proposed transferee reimburse us for the out-ofpocket expenses (including attorneys' fees) that we incurred in connection with the proposed transfer.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Transfer Fee is addressed in the context of franchise transfers. The Dermani Medspa franchisee must pay a Transfer Fee equal to 50% of the then-current initial franchise fee for a single unit franchise. This fee reimburses Dermani Medspa for reviewing the transfer application, including legal and accounting fees.
One-half of the Transfer Fee is due when the franchisee submits the transfer request, and this portion is non-refundable. The remaining balance is due when the transfer is completed. However, if the transfer does not occur even after Dermani Medspa has approved it, Dermani Medspa has the right to require the franchisee or the proposed transferee to reimburse them for any out-of-pocket expenses incurred during the proposed transfer, including attorney's fees.
In practical terms, this means a Dermani Medspa franchisee seeking to transfer their franchise should be aware that a significant portion of the Transfer Fee is non-refundable, regardless of whether the transfer is finalized. Additionally, they may be responsible for covering Dermani Medspa's expenses if the transfer falls through after approval. This policy is fairly typical in franchising, as the franchisor incurs costs in reviewing and processing transfer applications, regardless of the outcome.