Does Dermani Medspa have the option to purchase the assets of a Dermani Medspa franchised business upon termination or expiration of the Franchise Agreement?

According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa does have the option to purchase a franchisee's business assets under certain conditions. Specifically, upon the termination or expiration of the Franchise Agreement, Dermani Medspa has the right to purchase all or a portion of the assets of the franchised business. The purchase will be at the fair market value of the assets.

This provision in the Franchise Agreement is important for prospective franchisees to understand. If a franchisee's agreement is terminated, or when the agreement expires, Dermani Medspa has the option to buy the business's assets. This could include equipment, inventory, and other tangible items necessary for operating the Dermani Medspa location. The price Dermani Medspa would pay is the fair market value, which ideally protects the franchisee from being undervalued.

However, the determination of 'fair market value' can sometimes be a point of negotiation or contention. Franchisees should seek clarity on how this valuation will be determined, whether through an independent appraisal or another method. Understanding this process is crucial for any franchisee when considering the potential end of their franchise term or in the event of termination. This clause does not appear to apply to the Area Development Agreement.