Does the Manager have control or supervision over the provision of Professional Services at a Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
The Parties acknowledge that the medical spa and cosmetic services provided by Practice may constitute the "practice of medicine" under state laws and regulations. Notwithstanding anything contained in this Agreement, Practice will have exclusive authority and control over the professional aspects of Practice to the extent the same constitute or directly affect the practice of medicine, including but not limited to supervision and control of all professional affairs, all diagnosis, treatment and ethical determinations with respect to client which are required by law to be decided by a licensed professional and all professional management and clinical decision-making for Practice ("Professional Services"). All professional and health care services provided to clients shall be the ultimate responsibility of Practice. All policies and procedures of Practice relating to the governance of Practitioners and other licensed health care professionals who will be employed by or work under the direction of, or a contract with, Practice shall be adopted from time to time in the sole discretion of Practice, subject however only to prior notice to Manager (which shall not be able to approve or disapprove such policies). Such policies may include practice standards, peer review and corrective action, disciplinary matters, clinical procedures, utilization review and quality assurance procedures, credentialing, client care decisions, physician and other licensed health care professional compensation and incentives and training, continuing education, development and supervision. Manager shall have no right, either directly or indirectly, to control or direct the delivery of any Professional Service by Practice to any person and shall not: (i) interfere in any aspect of Practice's operations that is encompassed within the Professional Services; or (ii) direct or influence referrals to Practitioners or other health care professionals. Should any function assigned to Manager under this Agreement be construed to be within the scope of Professional Services such that, if performed by Manager, it would violate prohibitions on the corporate practice of medicine, such function thereafter shall be assigned to, and upon acceptance by Practice, become the responsibility of Practice.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, the Manager does not have the authority to control or supervise the provision of Professional Services. The FDD specifies that the Practice, which refers to the medical professionals providing services at the Medspa, retains exclusive authority and control over the professional aspects of their work. This includes supervision, control of professional affairs, diagnosis, treatment, ethical determinations, and clinical decision-making. The Manager is explicitly prohibited from interfering in these areas or influencing referrals to practitioners. This separation of administrative and professional responsibilities is typical in medical spa franchises to comply with corporate practice of medicine laws.
The agreement emphasizes that all professional and healthcare services provided to clients are the ultimate responsibility of the Practice. Policies and procedures related to the governance of practitioners and licensed healthcare professionals are determined solely by the Practice, with only prior notice to the Manager. These policies cover a range of critical areas, including practice standards, peer review, disciplinary actions, clinical procedures, utilization review, quality assurance, credentialing, client care decisions, compensation, incentives, training, continuing education, development, and supervision.
This arrangement ensures that the Manager's role is limited to administrative and operational support, while the Practice maintains full control over all medical decisions and professional standards. If any function assigned to the Manager is found to encroach upon the scope of Professional Services, it will be reassigned to the Practice to avoid violating corporate practice of medicine prohibitions. This division of responsibilities is crucial for maintaining legal compliance and ensuring the quality and integrity of medical services provided at the Dermani Medspa.