What does the 'Management Fee' cover that a PC pays to the Dermani Medspa franchisee?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
"PC" the professional corporation, professional limited liability company or other professional entity as permitted by law in your state to operate the Medspa.
"Management Agreement" the agreement that you enter into with a PC prior to opening the Franchised Business to manage the Medspa.
"Management Fee" The Management Fee is paid by the PC to you in exchange for the back office, administrative, and other services provided to the PC by you.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the 'Management Fee' is paid by the PC (professional corporation, professional limited liability company, or other professional entity) to the franchisee. This fee is in exchange for the back office, administrative, and other services that the franchisee provides to the PC.
In essence, the franchisee is compensated for handling the business management aspects of the Medspa, allowing the PC to focus on the medical services. This arrangement is formalized through a 'Management Agreement' that the franchisee enters into with the PC before opening the Franchised Business.
However, Dermani Medspa's FDD also includes an exhibit for a 'Waiver of Management Agreement'. This waiver indicates that if state law does not require a Management Agreement between the franchisee and a PC, the franchisor may waive the requirement, allowing the franchisee to directly own and operate the Medspa. This waiver requires the franchisee to confirm with their legal counsel that such an arrangement is permissible under state laws and regulations.