Is Dermani Medspa obligated to form an advisory council?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
4.5. Advisory Council.
- 4.5.1. We may, in our discretion, form an advisory council to work with us to improve the System, the products and services offered by Medspas, advertising conducted by the System Marketing Fund, and any other matters that we deem appropriate. If an advisory council is formed, it will act solely in an advisory capacity, and will not have decision making authority. We will have the right to form, change, merge or dissolve any advisory council. We may develop by-laws for any advisory council.
- 4.5.2. If formed, an advisory council may be comprised of our representatives and franchisee representatives and all franchisees are required to participate in council-related activities and meetings, and to pay any dues assessed for the administration of that program. We will also pay dues for our representatives that participate in the advisory council. If you participate on an advisory council, you will pay any expenses you incur related to your participation, such as travel and living expenses to attend council meetings.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa is not required to form an advisory council. The FDD states that Dermani Medspa "may, in our discretion, form an advisory council." This indicates that forming an advisory council is optional for the company.
If Dermani Medspa chooses to establish an advisory council, it will serve solely in an advisory capacity without any decision-making authority. Dermani Medspa retains the right to form, change, merge, or dissolve any advisory council at its discretion and may also develop bylaws for such a council.
If an advisory council is formed, it may include representatives from both Dermani Medspa and its franchisees. All franchisees are required to participate in council-related activities and meetings and to pay any dues assessed for the administration of the program. Franchisees participating on the advisory council are responsible for their own expenses, such as travel and lodging, to attend council meetings. Dermani Medspa will also pay dues for its representatives who participate in the advisory council.