If the System Marketing Fund is terminated by Dermani Medspa, can it be reinstated?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Although the System Marketing Fund is intended to be perpetual, we may terminate the System Marketing Fund at any time.
The System Marketing Fund will not be terminated until all monies in the System Marketing Fund have been spent.
If we terminate the System Marketing Fund, we have the right to reinstate it at any time and you must again contribute to the System Marketing Fund.
Any reinstated System Marketing Fund will be maintained as described herein.
Our current policy is that we or our affiliates that operate dermani MEDSPA®s will contribute to the System Marketing Fund at then-current rate that our franchisees are required to contribute as set forth in our then-current and effective form of Franchise Disclosure Document.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–43)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa may terminate the System Marketing Fund at any time, but not until all monies in the fund have been spent. Should Dermani Medspa terminate the System Marketing Fund, they retain the right to reinstate it at any time. If reinstated, franchisees must again contribute to the System Marketing Fund, which will then be maintained as described in the Franchise Agreement.
This means that while Dermani Medspa intends for the System Marketing Fund to be perpetual, it has the flexibility to discontinue and later revive the fund. For a franchisee, this implies a potential interruption in marketing activities funded by the system-wide contributions, followed by a resumption of mandatory contributions if the fund is reinstated.
It is important to note that Dermani Medspa's policy is for themselves and their affiliates that operate Dermani Medspa locations to contribute to the System Marketing Fund at the same rate as franchisees. This suggests that Dermani Medspa's corporate-owned locations will also be impacted by any termination and subsequent reinstatement of the System Marketing Fund, aligning their interests with those of the franchisees.