During the Post-Term Period, what activities related to a Competitive Business are Dermani Medspa members prohibited from doing within the Development Area?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Member covenants and agrees that during the Post-Term Period (defined below), Member will not, either directly indirectly, own, maintain, operate, engage in, manage, franchise or license, or have any direct or indirect controlling or non-controlling interest as an owner (whether of record, beneficially, or otherwise) or be or perform services as a partner, director, manager, employee, consultant, representative, or agent in any Competitive Business, that is, or is intended to be, located within the Development Area, or within a five (5) mile radius of the boarder of the Development Area or any other dermani MEDSPA® operating at the time.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, during the Post-Term Period, a member is restricted from engaging in certain activities related to a Competitive Business within the Development Area. Specifically, the member cannot directly or indirectly own, maintain, operate, engage in, manage, franchise, or license a Competitive Business. This includes having any direct or indirect controlling or non-controlling ownership interest, whether of record or beneficially.
Additionally, the member is prohibited from being or performing services as a partner, director, manager, employee, consultant, representative, or agent in any Competitive Business. This restriction applies to businesses that are located or intended to be located within the Development Area, or within a five-mile radius of the border of the Development Area, or any other Dermani Medspa operating at the time.
These restrictions are in place to protect Dermani Medspa's interests and prevent former members from using the knowledge and experience gained during their association with Dermani Medspa to directly compete with the franchise within a specific geographic area after the agreement ends. This type of non-compete clause is common in franchising to safeguard the brand and its franchisees.