What is the purpose of the 'Management Agreement' that a Dermani Medspa franchisee enters into with a PC?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
"Management Agreement" the agreement that you enter into with a PC prior to opening the Franchised Business to manage the Medspa.
"Management Fee" The Management Fee is paid by the PC to you in exchange for the back office, administrative, and other services provided to the PC by you.
1.2. Professional Corporation Under Management; Services. Prior to commencing operations of the Franchised Business, you shall enter into a Management Agreement with a PC whereby you will provide to the PC management and administrative services and support consistent with the System and as outlined in our form of Management Agreement to support the PC's medspa or medical center and its delivery of medical services and related products to patients, consistent with all applicable laws and regulations. Subject to applicable law and medical licensing board and regulations, the PC shall employ and control the physicians and professionally licensed personnel, including physician assistants, medical assistants, medical receptionists, estheticians, laser
You must use our standard form of Management Agreement; provided, however, that you should revise any provisions as necessary in order to be consistent with applicable state law, and based on advice you receive from your lawyers and other advisors, and you may negotiate the monetary terms and, with our written consent, certain other terms of the relationship with the PC. You must obtain our written approval of the final Management Agreement prior to its execution. We must approve the PC candidate. You shall ensure that the types of services available through the PC are limited to those in accordance with and pursuant to this Agreement and that the PC is operated in accordance with the Management Agreement. You shall have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business. In the event the Management Agreement with the PC is terminated during the Initial Term, you shall enter into a new Management Agreement with a replacement PC as soon as practicable, but in no event later than one hundred twenty (120) days after you provide or receive notice that the Management Agreement with the original PC is being terminated. In the event applicable state law does not require the use of a management agreement between you and a PC, as determined by you and your counsel, we may waive certain requirements and require you to execute our waiver of management agreement ("Waiver of Management Agreement"). If you qualify to enter into the Waiver of Management Agreement, we will make the final determination whether we will permit the waiver or not.
You will operate as the manager of the business and the Medspa, and will not be permitted to retain an independent management company.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, a franchisee typically enters into a Management Agreement with a Professional Corporation (PC) before opening their franchised business. The purpose of this agreement is for the franchisee to provide the PC with management and administrative services and support. This support must align with the Dermani Medspa system standards, as outlined in the provided Management Agreement form. The aim is to support the PC's medspa or medical center in delivering medical services and related products to patients, ensuring compliance with all relevant laws and regulations.
The franchisee is responsible for ensuring that the services provided by the PC align with the franchise agreement and that the PC operates according to the Management Agreement. Dermani Medspa must approve both the form of the Management Agreement and the PC candidate. The franchisee must maintain a Management Agreement with a PC throughout the operation of the franchised business. If the agreement is terminated, the franchisee has 120 days to establish a new Management Agreement with a replacement PC.
However, the requirement for a Management Agreement can be waived if state law does not mandate it, as determined by the franchisee and their legal counsel. In such cases, Dermani Medspa may require the franchisee to sign a waiver. Even if the franchisee qualifies for a waiver, Dermani Medspa retains the final decision on whether to permit the waiver. This flexibility allows franchisees to adapt to varying legal requirements while maintaining the brand's operational standards where necessary.
The franchisor will not provide any medical services, nor will they train, supervise, direct, control or suggest to the PC or its physicians or employees the manner in which the PC provides medical services to its patients. The franchisee will operate as the manager of the business and the Medspa, and will not be permitted to retain an independent management company.