If I am in Illinois, which office should I contact with questions about the Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS ADDENDUM TO AREA DEVELOPMENT AGREEMENT
ILLINOIS PROHIBITS THE CORPORATE PRACTICE OF MEDICINE. UNLICENSED INDIVIDUALS AND ENTITIES ARE PROHIBITED FROM OWNING, OPERATING AND MAINTAINING AN ESTABLISHMENT FOR THE STUDY, DIAGNOSIS AND TREATMENT OF HUMAN AILMENTS AND INJURIES, WHETHER PHYSICAL OR MENTAL. See Medical Corporation Act, 805 ILCS 15/2, 5 (West 2018) and Medical Practice Act of 1987, 225 ILCS 60/ (West 2018).
IF YOU ARE NOT LICENSED/CERTIFIED IN ILLINOIS TO PROVIDE SERVICES OF THE NATURE DESCRIBED IN THIS DISCLOSURE DOCUMENT, YOU MUST NEGOTIATE THE TERMS OF A MANAGEMENT AGREEMENT WITH LICENSED PROFESSIONALS WHO WILL PROVIDE THE MEDICAL SERVICES THAT YOUR FRANCHISED BUSINESS OFFERS. RETAIN AN EXPERIENCED ATTORNEY WHO WILL LOOK OUT FOR YOUR BEST INTERESTS IN THIS BUSINESS VENTURE.
- Notwithstanding anything to the contrary contained in the Area Development Agreement, to the extent that the Area Development Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
Illinois law governs the Area Development Agreement.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in an area development agreement that designates jurisdiction or venue outside the State of Illinois is void. However, an area development agreement may provide for arbitration outside of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of an area development agreement are set forth in section 19 and 20 of the Illinois Franchise Disclosure Act.
Payment of the Development Fee is deferred until such time as the Franchisor completes its initial obligations and the first Franchised Business opens for business. The deferral of the Development Fee is required by the Illinois Attorney General's Office based on our financial statements. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, if a prospective franchisee is located in Illinois, they should be aware of specific legal considerations. Illinois prohibits the corporate practice of medicine, meaning unlicensed individuals or entities cannot own or operate establishments for medical diagnosis and treatment.
Therefore, if a franchisee is not licensed or certified to provide the medical services Dermani Medspa offers in Illinois, they must negotiate a management agreement with licensed professionals who will provide those services. The FDD also advises retaining an experienced attorney to protect the franchisee's interests in this business venture.
The Illinois Addendum to the Area Development Agreement states that Illinois law governs the Area Development Agreement. It also notes that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois is permitted. The Illinois Franchise Disclosure Act ensures that franchisees cannot waive compliance with Illinois law. The payment of the Development Fee is deferred until Dermani Medspa completes its initial obligations and the first Franchised Business opens, a requirement imposed by the Illinois Attorney General's Office due to the franchisor's financial condition.