What is included in the 'Cost of Goods Sold' for a Dermani Medspa, and what costs are specifically excluded?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Cost of Goods Sold" means the total amount of products and goods, including, without limitation, injectables and skincare products, that was sold or consumed by each Company Location during the Measurement Period. To the extent Company Locations had costs or expenses for items
that will not be used, offered, or sold at franchised dermani MEDSPA®s, those costs were excluded from the Cost of Goods Sold.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 58–61)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Cost of Goods Sold (COGS) includes the total amount of products and goods sold or consumed by each company location. This encompasses injectables and skincare products.
However, the FDD specifies that costs or expenses for items not used, offered, or sold at franchised Dermani Medspa locations are excluded from the Cost of Goods Sold. For example, revenues from services such as Coolsculpting® performed at one franchised location were excluded from the gross revenue figures for that location. Similarly, costs associated with Coolsculpting® cycles were excluded from the Cost of Goods Sold for locations that offered this service.
For a prospective franchisee, this means that the Cost of Goods Sold will primarily reflect the direct cost of products and goods like injectables and skincare items that are core to the Dermani Medspa business model. It's important to note that services or products unique to certain locations and not part of the standard franchise offering will not be included in this calculation. This distinction ensures that the financial performance data presented is relevant and comparable across different Dermani Medspa franchises.