What outstanding payments must be made to Dermani Medspa before a franchise transfer can be approved?

According to Dermani Medspa's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must first ensure all financial obligations to Dermani Medspa and its vendors are settled. Specifically, all Royalty Fees, System Marketing Fees, and any other amounts owed to Dermani Medspa must be paid in full before the transfer can proceed.

This requirement ensures that Dermani Medspa maintains its revenue stream and that the franchise system remains financially healthy during ownership transitions. It also protects third-party vendors who have provided goods or services to the franchise. However, there is an exception for amounts payable to third-party vendors that are the subject of a good faith dispute, meaning that if the franchisee has a legitimate disagreement with a vendor, they may not be required to pay that specific amount before the transfer.

In addition to settling outstanding payments, the franchisee must also submit all required reports and statements and must not be in violation of the Franchise Agreement at the time of transfer. This encompasses not only financial obligations but also operational and compliance-related responsibilities. The transferee must also be approved by Dermani Medspa and meet the then-current standards for new franchisees, including demonstrating sufficient business experience, aptitude, and financial resources.