Who must operate the Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
The dermani MEDSPA® will be operated by one or more physicians licensed to provide medical spa services in the state in which the dermani MEDSPA® is located. The physician or physicians will form a professional entity, which is a professional corporation, professional limited liability company, service corporation, or similar entity, referred to as a "PC," that will provide medical services to clients at the dermani MEDSPA®. In addition to signing the Franchise Agreement with us, before you begin operating the Franchised Business, you must enter into a management agreement ("Management Agreement") with the PC.
You must sign a Management Agreement with a PC unless your dermani MEDSPA® will be in a state that permits one entity to both manage and operate the dermani MEDSPA®, including providing medical services from the dermani MEDSPA®. If you are in a state that permits you to both manage the dermani MEDSPA® and provide medical services, you must sign our Waiver of Management Agreement. More information about the Waiver of Management Agreement is provided below. In the event applicable state law permits franchisees to operate the dermani MEDSPA®, or does not require a PC, then you as the owner of the Franchised Business must satisfy and comply with all other requirements that would otherwise pertain to the PC (for example, obtaining and maintaining professional liability coverage as discussed in Item 8).
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, the dermani MEDSPA® will typically be operated by one or more physicians licensed to provide medical spa services in the state in which the dermani MEDSPA® is located. These physicians will form a professional entity, such as a professional corporation or limited liability company, referred to as a "PC," to provide medical services at the medspa. The franchisee must sign a Management Agreement with this PC before beginning operations.
However, there's an exception: if the Dermani Medspa is located in a state that permits one entity to both manage and operate the medspa, including providing medical services, the franchisee may not need to form a PC. In this case, the franchisee would sign a Waiver of Management Agreement. If state law permits franchisees to operate the medspa or does not require a PC, the franchisee, as the owner, must still meet all requirements that would otherwise apply to the PC, such as maintaining professional liability coverage.
This structure is due to the heavily regulated nature of the medical industry, including federal, state, and local laws, as well as state professional licensing board rules. These regulations cover various aspects, including the practice of medicine, relationships between healthcare providers, anti-kickback laws, fee splitting restrictions, self-referral restrictions, client record privacy (HIPAA), use of medical devices, and advertising of medical services. Franchisees must ensure compliance with all applicable laws and secure all required licenses and permits for the operation of the business and its employees.