Is the initial payment for the Dermani Medspa Transfer Fee refundable if the transfer is not consummated?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 5% of Gross Revenue | Each Week, on or before the Wednesday of each week calculated on the Gross Revenue for the prior Week | See Note 2 for the definition of “Gross Revenue” and “Week.” |
| System Marketing Fee | Up to 2% of Gross Revenue, currently 0.25% | Same as Royalty | See Note3. |
| Local Advertising Spend | $500 each month | Monthly | This is the minimum amount that you must spend each month on local advertising and marketing. The actual amount needed for you to spend on local marketing each month may be significantly higher than this amount. You will pay this amount to various third parties, not us. We may recommend and/or require you to spend such local marketing expenditures in certain ways. |
| Social Media/ Technology Fee | Our then- current Social Media/ Technology Fee, currently $300 per month (See Note 4) | Monthly | We reserve the right to increase the Social Media/Technology Fee by no more than twenty percent (20%) each year, which in any event the maximum required Social Media/Technology Fee shall not exceed $500 each month. |
| Type of Fee | Amount | Due Date | Remarks |
| (Note 1) | |||
| Non- Compliance with System Standards | Our then- current fee, which may vary depending upon the specific required policy you violate | As incurred | Not including any monetary defaults, we may charge you our then-current non-compliance fee (which will not exceed $500 per violation), as set forth in the Manual or otherwise, in the event you fail to fully comply with any of our then- required System Standards (as that term is defined in Item 8) |
| OSHA Compliance Fee | Our costs and expenses, currently $150/month | Monthly | We may require you to pay this fee to us or directly to our designated approved supplier that will evaluate your Franchised Business and Medspa for compliance with OSHA. |
| Type of Fee | Amount | Due Date | Remarks |
| (Note 1) | the audit, reasonable accounting and legal costs | underpay your royalties by 2% or more. You will also have to pay interest and late fees on the underpayment. | |
| Supplier Testing | Our then current fee (currently, $500), plus our costs | Upon demand, if incurred | If you propose a new supplier of products or services, and we inspect the supplier or test the supplier's products, we may charge you or the supplier for our costs in conducting those inspections or running those tests. We may increase this fee upon notice to you, which will not exceed $1,000 per request, plus our out of pocket costs and expenses. |
| Transfer Fee | 50% of our then-current initial franchise fee $10,000 if you transfer an Area Development Agreement | One-half of the Transfer Fee shall be paid at the time you submit your request to us for the proposed transfer, and the balance shall be paid at the time the transfer is consummated or closes | The amount you pay at the time you submit your request to us is non-refundable, even if the transfer is not ultimately consummated. If the transfer is not consummated after we have provided our approval for the proposed transfer, then we have the right to require that you or the proposed transferee reimburse us for the out-of pocket expenses (including attorneys' fees) that we incurred in connection with the proposed transfer. The transfer fee under an Area Development Agreement is in addition to the transfer fees yo |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, a portion of the transfer fee is non-refundable. Specifically, if a franchisee seeks to transfer an Area Development Agreement, the transfer fee is 50% of the then-current initial franchise fee, amounting to $10,000.
One-half of this transfer fee is due when the franchisee submits the transfer request, and the remaining balance is due upon the consummation of the transfer. The FDD explicitly states that the initial payment made at the time of the transfer request is non-refundable, even if the transfer does not ultimately occur.
Furthermore, if Dermani Medspa approves the proposed transfer but it is not consummated, Dermani Medspa retains the right to require the franchisee or the proposed transferee to reimburse Dermani Medspa for any out-of-pocket expenses, including attorney's fees, incurred during the transfer process. This policy ensures that Dermani Medspa is compensated for its time and expenses, regardless of whether the transfer is finalized.