What payroll expenses are included in the 'Payroll Expenses' for a Dermani Medspa, and what is excluded, such as owner's pay?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Payroll Expenses" means the total amount each Company Location paid its employees in 2022 for the types of payroll expenses that a franchisee is likely to incur in operating its dermani MEDSPA®, including pay, benefits, and payroll taxes. The number and type of specific personnel varies among each Location, but generally includes 1 to 2 front desk coordinators per Company Location, 3 to 7 full-time employees ("FTE") estheticians/laser practitioners per Company Location, and 1 to 3 nurse practitioners and/or physician assistant cosmetic injectors per Company Location. Because we do not contract with a PC or management company, Payroll Expenses also includes each Company Location 's medical director's fees. Payroll Expenses does not include any amounts that you (or an Operating Principal) may pay yourself. Excluded from this line item are the payroll expenses that were incurred by a Company Location that is contributable to us as the franchisor, including, without limitation, expenses that were incurred by a Company Location in offering esthetician training and other services to the general public, as you will not be incurring such costs and expenses. As noted above, based upon applicable local laws, none of the Locations currently contract with a PC or a management company. You, as a franchisee, or your PC, will have the sole discretion to determine the number of employees and managers hired for your dermani MEDSPA®, and their hours, compensation and benefits. These figures are not requirements nor recommendations. Amounts for tips collected on behalf of the staff have been removed from Revenue and from Payroll costs.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 58–61)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, 'Payroll Expenses' include the total amount each company-owned location paid its employees in 2022 for expenses a franchisee would likely incur. This encompasses pay, benefits, and payroll taxes for personnel such as 1 to 2 front desk coordinators, 3 to 7 full-time estheticians/laser practitioners, and 1 to 3 nurse practitioners and/or physician assistant cosmetic injectors per location. The payroll expenses also include medical director's fees.
However, the 'Payroll Expenses' exclude any compensation that a franchisee (or an Operating Principal) might pay themselves. Additionally, payroll expenses incurred by a company location related to the franchisor's activities, such as esthetician training for the general public, are also excluded, as franchisees will not incur these costs. The FDD also notes that amounts for tips collected on behalf of the staff have been removed from Revenue and from Payroll costs.
For a prospective Dermani Medspa franchisee, understanding these inclusions and exclusions is crucial for accurate financial planning. Franchisees have the discretion to determine the number of employees, their hours, compensation, and benefits, but the provided figures are neither requirements nor recommendations. This information helps in forecasting labor costs, a significant component of operating expenses.