For Dermani Medspa, what is the Manager's role in billing and collections for the Practice?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.01. Professional and Other Fees. In order to accurately bill Practice's clients, Practice with Manager's assistance shall establish a schedule of fees and charges for the Professional Services. Practice agrees that any schedule of fees and charges is subject to approval by Manager only to the extent necessary to ensure Manager is able to administer the schedule of fees and charges.
- 6.02. Billings. Billings of Practice for all services rendered by Practice shall be by and in the name of Practice. Practice will use the name "[Enter Name]" or a similar name in its billings.
- 6.03. Billing and Collection Agent. Subject to the provisions of this Agreement, and until Practice otherwise directs in writing, Manager shall serve as collection agent for Practice in connection with client, responsible party and insurance billing of Practice. Manager shall maintain accurate accounting of all collected fees generated from Practice as well as payment of Practice expenses, including Manager's Administrative Fee. Said processing shall consist of establishing and maintaining a book account for Practice showing all fee collections and expense disbursements made by Manager on Practice's behalf. Manager shall provide Practice with financial statements for Practice reflecting such processing. All decisions regarding the collection or collectability of accounts receivable, the establishment and maintenance of the depository account described herein, and control over the financial accounts of Practice shall rest with Practice and Manager's sole role and responsibility shall be to act as agent for and at the direction and control of Practice with respect to such matters.
6.04. Reports. Manager shall provide Practice, weekly, monthly, and annually, with financial statements for Practice.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Manager plays a significant role in billing and collections for the Practice, acting as a collection agent. The Manager, with the Practice's assistance, establishes a schedule of fees and charges for professional services, subject to the Manager's approval to ensure administrative feasibility. The billings for services rendered by the Practice will be in the name of the Practice.
The Manager is responsible for client, responsible party, and insurance billing, maintaining accurate accounting of all collected fees and Practice expenses, including the Manager's Administrative Fee. This involves keeping a book account showing all fee collections and expense disbursements made on the Practice's behalf. The Manager also provides the Practice with financial statements reflecting this processing, delivered weekly, monthly, and annually.
However, all decisions regarding the collection or collectability of accounts receivable, the establishment and maintenance of the depository account, and control over the financial accounts of the Practice ultimately rest with the Practice. The Manager's role is limited to acting as an agent under the direction and control of the Practice in these matters. This division of responsibility ensures that while the Manager handles the administrative aspects of billing and collections, the Practice retains control over financial decisions.