If Dermani Medspa pays for insurance on behalf of the franchisee, how long does the franchisee have to repay Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail or refuse to obtain and maintain the insurance we specify, in addition to our other remedies, we may obtain comparable insurance for you and the Franchised Business on your behalf, in which event you shall cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a ten percent (10%) administrative fee for our time incurred in obtaining the insurance.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance, Dermani Medspa has the right to obtain insurance on behalf of the franchisee's business. In such a case, the franchisee is obligated to cooperate with Dermani Medspa and reimburse them for all premiums, costs, and expenses incurred in obtaining and maintaining the insurance.
In addition to the direct costs of the insurance, Dermani Medspa will also charge a ten percent (10%) administrative fee for their time spent obtaining the insurance. The FDD does not specify a particular timeframe for the franchisee to reimburse Dermani Medspa for these insurance-related costs and fees.
Since the repayment timeframe is not specified in the FDD, it is important for a prospective franchisee to clarify the repayment terms with Dermani Medspa. Understanding the repayment schedule and any potential interest or late payment penalties is crucial for managing the financial obligations of the franchise.