Is it mandatory to use Dermani Medspa's designated construction contractor for buildout?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
shall not exceed $2,500. Currently this is set at zero dollars.
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- Site Selection. We require you to either use our designated real estate broker when you are evaluating potential sites, or, if you use your own real estate broker, then you must use our designated real estate broker to oversee your site selection process. Likewise, we require you to either use our designated construction contractor when you are building out your dermani MEDSPA®, or, if you use your own contractor, then you must use our designated contractor to oversee your buildout. The low estimate assumes that you will use our designated real estate broker and contractor. The high estimate assumes that you will use your own real estate broker and contractor, and therefore pay our designated real estate broker and contractor additional fees for their services.
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- Architectural and MEP Plans. The low estimate assumes that mechanical, electrical, and plumbing (MEP) plans are already in place, and the high estimate assumes that both architectural and MEP plans will need to be prepared.
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- Real Estate; Site Evaluation; Prepaid Rent and Security Deposit. The prototypical dermani MEDSPA® is approximately 1,500 to 2,000 square feet in size. The cost per square foot for leasing commercial space varies considerably depending upon the location and market conditions affecting commercial property. We estimate the cost of leasing commercial space per square foot to be between $25 and $50 annually (although this figure can vary significantly from market to market). The amounts in the chart reflect our estimate for your payment of rent for the first three months of operations at the dermani MEDSPA®.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are not strictly required to use the franchisor's designated construction contractor for the buildout of their medspa. However, Dermani Medspa mandates that if a franchisee chooses to use their own contractor, they must also engage Dermani Medspa's designated contractor to oversee the buildout process.
This oversight comes with additional fees, which are reflected in the estimated initial investment. The low estimate for site selection and construction oversight is $0, assuming the franchisee uses Dermani Medspa's designated contractor directly. The high estimate is $5,000, accounting for the additional fees paid to Dermani Medspa's designated contractor when overseeing a franchisee's chosen contractor. This dual-contractor approach ensures that even when franchisees opt for their own construction team, the buildout adheres to Dermani Medspa's standards and specifications.
The FDD also outlines that leasehold improvements, which include wiring, flooring, sheetrock, plumbing, paint, HVAC, lighting, and décor items, must be constructed according to Dermani Medspa's specifications. The cost for these improvements can vary significantly, with estimated low and high amounts of $83,397 and $309,376 respectively, depending on factors like location, size, and existing conditions of the premises. Franchisees should carefully consider these costs and the potential for negotiating a tenant improvement allowance with the landlord to offset some of these expenses.