What is the maximum amount of the Non-compliance Fee that Dermani Medspa can charge per violation?

According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees may be charged a Non-compliance Fee for failing to comply with the System Standards. This fee is in addition to any other legal remedies available to Dermani Medspa. The System Standards include mandatory and suggested specifications, standards, operating procedures, and rules that Dermani Medspa prescribes for the management and operation of the Franchised Business and Medspa. These standards can be modified periodically, potentially requiring additional capital investment or higher operating costs for the franchisee.

The Non-compliance Fee will not exceed $500 per violation. This fee is applicable for non-monetary defaults related to System Standards. System Standards may regulate bookkeeping, accounting, data processing, recordkeeping systems, report formats, content, frequency of reports, press releases, minimum and maximum rates for products and services, membership reciprocity, and any other aspects of operating the Franchised Business.

Prospective Dermani Medspa franchisees should carefully review the System Standards outlined in the Manual and other written communications from Dermani Medspa to understand the specific requirements and potential costs associated with compliance. Understanding these standards and the potential for non-compliance fees is crucial for budgeting and operational planning. Franchisees should also be aware that these standards can change, potentially requiring further investment in the business.