What is the Dermani Medspa Manager's discretion regarding consent for the Practice to engage in restricted activities?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Practice Restrictive Covenant.
During the term of this Agreement, Practice shall not directly or indirectly, through an affiliate (which shall not include independent contractor physicians of Practice) or otherwise, without the prior written consent of Manager, which consent may be withheld by Manager in its sole discretion, acquire, establish, operate, manage, control, own (debt or equity, but excluding ownership of less than five percent of the equity of any publicly traded entity), or maintain any other interest in, in any such case within the United States: (a) any entity or enterprise, other than Practice, that provides the Professional Services; (b) any entity or enterprise that provides administrative, operational and non-professional services to Practitioners or offers any type of services or products similar to those that Manager offers; or (c) any health maintenance organization, preferred provider organization, exclusive provider organization, or similar entity or organization.
Furthermore, upon the termination or expiration of this Agreement, the Practice shall not, for a period of two (2) years, acquire, establish, operate, manage, control, own (debt or equity, but excluding ownership of less than five percent of the equity of any publicly
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Manager has sole discretion to withhold consent regarding certain restrictive covenants applicable to the Practice. Specifically, during the term of the agreement between the Practice and the Manager, the Practice cannot engage in certain activities without the Manager's prior written consent. The Manager can withhold this consent at their sole discretion.
The restricted activities include, but are not limited to, the Practice acquiring, establishing, operating, managing, controlling, owning, or maintaining any interest in the United States in: any entity that provides professional services; any entity that offers administrative, operational, and non-professional services to practitioners or offers similar services or products to those offered by the Manager; or any health maintenance organization, preferred provider organization, or similar entity.
This means that as a Dermani Medspa franchisee, the Manager has significant control over the Practice's ability to engage in related or potentially competitive business activities during the term of the agreement. This clause protects the Manager's interests by preventing the Practice from expanding into areas that could compete with or undermine the services provided by the Manager. After the agreement terminates or expires, the Practice is restricted for two years from similar activities.