What is the maximum Supplier Testing fee that Dermani Medspa can charge?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 5% of Gross Revenue | Each Week, on or before the Wednesday of each week calculated on the Gross Revenue for the prior Week | See Note 2 for the definition of “Gross Revenue” and “Week.” |
| System Marketing Fee | Up to 2% of Gross Revenue, currently 0.25% | Same as Royalty | See Note3. |
| Local Advertising Spend | $500 each month | Monthly | This is the minimum amount that you must spend each month on local advertising and marketing. The actual amount needed for you to spend on local marketing each month may be significantly higher than this amount. You will pay this amount to various third parties, not us. We may recommend and/or require you to spend such local marketing expenditures in certain ways. |
| Social Media/ Technology Fee | Our then- current Social Media/ Technology Fee, currently $300 per month (See Note 4) | Monthly | We reserve the right to increase the Social Media/Technology Fee by no more than twenty percent (20%) each year, which in any event the maximum required Social Media/Technology Fee shall not exceed $500 each month. |
| Type of Fee | Amount | Due Date | Remarks |
| (Note 1) |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, if a franchisee proposes a new supplier of products or services, Dermani Medspa may inspect the supplier or test the supplier's products. In such cases, Dermani Medspa may charge the franchisee or the supplier for the costs of these inspections or tests.
The standard Supplier Testing fee is currently $500, plus Dermani Medspa's costs. However, Dermani Medspa can increase this fee upon notice to the franchisee. The maximum Supplier Testing fee that Dermani Medspa can charge is $1,000 per request, in addition to their out-of-pocket costs and expenses.
This means that if a Dermani Medspa franchisee wants to use a supplier not already approved by the franchisor, they could incur significant costs for testing and approval. It is important for prospective franchisees to understand these potential costs and factor them into their budget when considering new suppliers. Franchisees should also inquire about the criteria Dermani Medspa uses to evaluate and approve suppliers to better understand the likelihood of incurring these fees.