Can the Dermani Medspa Manager render similar services for other businesses, and if so, are there any conditions?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement must be established and managed by a Franchised Business pursuant to a separate dermani MEDSPA® Franchise Agreement (a "Franchise Agreement") that must be executed as provided in Section 3.1 below; and
- 1.1.3. that each Franchised Businesses and dermani MEDSPA® developed under this Agreement must be located within the area that is specified in Paragraph 2 of Exhibit A, attached hereto (the "Development Area").
- 1.2. No Protections to Development Area. Your rights within the Development Area are nonexclusive, and we may award the same Development Area to multiple area developers. However, we will not sell the right to develop more dermani MEDSPA®s than the total number of available territories available in the Development Area.
- 1.3. Rights we Reserve. We retain all rights with respect to Franchised Businesses and dermani MEDSPA®s, the System, the Marks, the sale of similar or dissimilar services, and any other activities we deem appropriate whenever and wherever we desire, including, but not limited to:
- 1.3.1. the right to operate, and to grant others the right to operate, Franchised Businesses and similar medical management businesses or similar medspas or medical centers under different names or marks located anywhere within or outside the Development Area under any terms and conditions we deem appropriate and regardless of proximity to the Premises or the Development Area;
- 1.3.2. the right to establish and operate (and to grant to others the right to establish and operate) any other businesses offering products and services that are different from the products or services offered at dermani MEDSPA®s through similar or dissimilar channels of distribution (including, but not limited to: (i) sales through direct marketing, such as over the Internet or through catalogs or telemarketing; (ii) sales through retail stores that do not operate under the Marks; and (iii) sales made at wholesale), at any locations inside or outside the Development Area under trademarks or service marks other than the Marks and on any terms and conditions we deem appropriate;
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, the franchisor retains all rights to the sale of similar or dissimilar services. Dermani Medspa reserves the right to operate similar medical management businesses or medspas under different names or marks, regardless of their proximity to the franchisee's location. This means that Dermani Medspa could potentially authorize or operate competing businesses, even within the same Development Area as a franchisee.
Dermani Medspa also retains the right to establish other businesses offering different products and services through various channels, including online sales or retail stores not operating under the Dermani Medspa marks. They can do so inside or outside the Development Area under different trademarks and on any terms they deem appropriate. Furthermore, Dermani Medspa has the right to acquire or be acquired by businesses that compete with Dermani Medspa franchises, even if those businesses operate in the franchisee's Development Area.
The franchisee is specifically prohibited from engaging in any activities that Dermani Medspa has reserved for itself, except as otherwise provided in the agreement. This includes operating similar medical management businesses or medspas. Therefore, the Dermani Medspa franchisee is restricted from offering similar services through other businesses, as these rights are retained by the franchisor. This ensures that Dermani Medspa maintains control over its brand and market strategy, but it also means that franchisees face potential competition from the franchisor's other ventures.