Who is included in the definition of 'Immediate Family Members' that are subject to the non-compete restrictions outlined in the Dermani Medspa agreement?

According to the 2025 Dermani Medspa Franchise Disclosure Document, the term 'Immediate Family Members' includes spouses, domestic partners, and children who are 18 years old or older. The definition also extends to other persons that Dermani Medspa may specify.

This definition is important because these 'Immediate Family Members' are subject to certain non-compete restrictions after the termination, transfer, or expiration of the franchise agreement. Specifically, for two years after the end of the agreement, these individuals are restricted from owning, operating, or being involved in any capacity with a competitive business within the Development Area or within a five-mile radius of any Dermani Medspa location. This restriction applies unless otherwise permitted by any franchise agreements that remain in effect between the franchisee and Dermani Medspa.

The inclusion of 'Immediate Family Members' in the non-compete agreement is a significant consideration for prospective franchisees. It means that the franchisee's close family members will also be restricted from engaging in competitive business activities, which could impact their career or business opportunities. The franchisee should seek clarification from Dermani Medspa regarding what 'other persons' might be specified as Immediate Family Members to fully understand the scope of this restriction.