Can Dermani Medspa limit the number of approved suppliers or vendors that a franchisee may deal with?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that we may establish one or more preferred vendor programs with one or more nationally or regionally known suppliers who are willing to supply all or some Franchised Businesses with some or all of the Products or services that we require for use and/or sale in the development and/or management of the Medspas.
In this event, we may limit the number of approved suppliers or vendors with whom you may deal, designate sources that you must use for some or all Products or services, and/or refuse any of your requests if we believe that this action is in the best interest of the System or the network of Franchised Businesses and Medspas.
We will have unlimited rights to approve or disapprove the suppliers or vendors who may be permitted to sell Products or services to you.
We may at any time revoke any previous approvals of any suppliers or vendors at our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa has the right to limit the number of approved suppliers or vendors that a franchisee may deal with. Dermani Medspa may also designate specific sources that franchisees must use for some or all products or services. Furthermore, Dermani Medspa can refuse a franchisee's requests regarding suppliers or vendors if they believe it is in the best interest of the Dermani Medspa system or network.
Dermani Medspa retains unlimited rights to approve or disapprove suppliers or vendors who may sell products or services to franchisees. They can also revoke any previous approvals of suppliers or vendors at their sole discretion. This gives Dermani Medspa significant control over the supply chain and the products used within the franchise system.
This policy ensures that Dermani Medspa can maintain quality control and consistency across all franchise locations. It also allows them to negotiate better pricing and support services with preferred vendors, potentially benefiting both the franchisor and the franchisees through system-wide purchasing power. However, it also means that franchisees have limited autonomy in choosing their suppliers and may be required to purchase from vendors that Dermani Medspa has selected, regardless of whether the franchisee could find better deals elsewhere.
Prospective franchisees should be aware of these restrictions and consider how they might impact their business operations and profitability. It is important to understand the criteria Dermani Medspa uses for approving suppliers and vendors and to evaluate the potential benefits and drawbacks of this centralized purchasing system.