For Dermani Medspa, what is the purpose of holding all System Marketing Fund contributions?

According to Dermani Medspa's 2025 Franchise Disclosure Document, the System Marketing Fund contributions are held for the benefit of the Dermani Medspa system, the brand, and the contributors. These contributions are specifically designated for use as described in Section 9.2 of the FDD. This means the funds are not considered Dermani Medspa's assets but are to be used to enhance and protect the brand and for advertising, marketing, and public relations efforts.

More specifically, Dermani Medspa details that the System Marketing Fund is to be used exclusively for the costs of maintaining, administering, and directing advertising, marketing, public relations, and promotional programs. These programs aim to enhance the image of the Dermani Medspa system. Examples of such programs include media advertising campaigns, social media campaigns, paid per click campaigns, direct mail advertising, marketing surveys, and other public relations activities. The fund can also cover the costs of employing advertising agencies, brand research and development, seminars for franchisees, promotional items, and website maintenance.

Dermani Medspa also clarifies that while the System Marketing Fund is intended to benefit all franchisees, there is no guarantee that expenditures will be made in any specific geographic area or be proportionate to contributions from franchisees in that area. Dermani Medspa may also use the fund to provide rebates or reimbursements to franchisees for local expenditures that promote general public awareness and support for the system, provided these expenditures are approved in advance. This means that franchisees should not expect a direct or proportional return on their contributions in their specific market.