When is the payment of the Development Fee deferred for a Dermani Medspa franchise in Illinois?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Payment of the Development Fee is deferred until such time as the Franchisor completes its initial obligations and the first Franchised Business opens for business. The deferral of the Development Fee is required by the Illinois Attorney General's Office based on our financial statements. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, for franchisees in Illinois, the payment of the Development Fee is deferred. This deferral lasts until Dermani Medspa completes its initial obligations and the first franchised business opens.
The Illinois Attorney General's Office mandates this deferral due to Dermani Medspa's financial condition. This requirement is based on a review of Dermani Medspa's financial statements.
This deferral provides a financial benefit to franchisees in Illinois, as they do not have to pay the Development Fee upfront. Instead, they can delay payment until the business is operational. However, prospective franchisees should carefully review Dermani Medspa's financial statements and consult with a financial advisor to assess the risks associated with the franchisor's financial condition.