What is the latest date that triggers the start of the Dermani Medspa non-compete period?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination, transfer, or expiration of this Agreement you agree that, for two (2) years beginning on the later of (i) the effective date of termination, transfer, or expiration, or (ii) the date on which all persons restricted by this Section 9.2 begin to comply with this Section 9.2, or (iii) if litigation is necessary to enforce this Agreement, the date of entry of an order by a court of competent jurisdiction enforcing this Agreement: you and your immediate family members, for yourself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, limited liability company, or other entity, will not own, maintain, operate, engage in, manage, franchise or license, or have any direct or indirect controlling or non-controlling interest as an owner (whether of record, beneficially, or otherwise) or be or perform services as a partner, director, manager, employee, consultant, representative, or agent in any Competitive Business, that is, or is intended to be, located within the Development Area, or within a five (5) mile radius of the boarder of the Development Area or any other dermani MEDSPA® operating at the time the obligations under this Section 8.2 commence, except as permitted by any franchise agreements that remain in effect between you and us. You agree that the length of time in this Section 9.2 will be tolled for any period during which you are in breach of the covenants set forth in this Section 9.2, or any other period during which we seek to enforce this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, the non-compete period lasts for two years. The start date of this period is determined by the latest of three possible events.
The first potential trigger is the effective date of the termination, transfer, or expiration of the Franchise Agreement. The second is the date when all individuals bound by the non-compete obligations begin to comply with those obligations. Finally, if Dermani Medspa pursues litigation to enforce the agreement, the start date becomes the date a court order is issued to enforce the agreement.
Therefore, a Dermani Medspa franchisee needs to be aware that the non-compete clock may not start running immediately upon termination or expiration of the agreement. It could be delayed until compliance begins or until a court order is obtained, potentially extending the period during which they are restricted from engaging in a competitive business.