Can Dermani Medspa operate Franchised Businesses in non-traditional locations?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
We retain all rights with respect to Franchised Businesses and dermani MEDSPA®s, the System, the Marks, the sale of similar or dissimilar services, and any other activities we deem appropriate whenever and wherever we desire, including, but not limited to:
1.3.1. the right to operate, and to grant others the right to operate, Franchised Businesses and similar medical management businesses or similar medspas or medical centers under different names or marks located anywhere within or outside the Development Area under any terms and conditions we deem appropriate and regardless of proximity to the Premises or the Development Area;
1.3.2. the right to establish and operate (and to grant to others the right to establish and operate) any other businesses offering products and services that are different from the products or services offered at dermani MEDSPA®s through similar or dissimilar channels of distribution (including, but not limited to: (i) sales through direct marketing, such as over the Internet or through catalogs or telemarketing; (ii) sales through retail stores that do not operate under the Marks; and (iii) sales made at wholesale), at any locations inside or outside the Development Area under trademarks or service marks other than the Marks and on any terms and conditions we deem appropriate;
1.3.3. the right to acquire the assets or ownership interests of one or more businesses that operate, and/or has granted franchises, licenses, or similar rights to one or more third parties to operate, businesses similar to and/or competing with dermani MEDSPA®s and Franchised Businesses related to dermani MEDSPA®s, and/or the right to be acquired by a competing medical business or medical management business, or by another business, even if such business operates, franchises and/or licenses competitive businesses in the Development Area, and that if we acquire, or are acquired by, such a competing business or chain, we may establish or grant franchises or licenses to establish new or additional
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa retains the right to operate Franchised Businesses and similar medical management businesses or medspas under different names or marks located anywhere, regardless of proximity to the franchisee's premises or development area. This means that Dermani Medspa has broad discretion in establishing new locations or alternative channels of distribution.
This also includes the right to establish and operate other businesses offering different products and services through various channels, such as direct marketing, retail stores not operating under Dermani Medspa's marks, and wholesale, at any location. These activities can occur inside or outside the franchisee's Development Area, under different trademarks or service marks, and on any terms and conditions Dermani Medspa deems appropriate.
Furthermore, Dermani Medspa reserves the right to acquire assets or ownership interests in businesses similar to or competing with Dermani Medspa and Franchised Businesses. They can also be acquired by a competing medical business. If Dermani Medspa acquires or is acquired by a competing business, they may establish or grant franchises or licenses to establish new or additional competitive businesses, even within the franchisee's Development Area. This clause highlights the potential for direct competition from the franchisor or businesses affiliated with the franchisor.