Can Dermani Medspa reduce the scope of any covenant in the agreement without my consent?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
9. COVENANTS AND RESTRICTIONS ON COMPETITION
- 9.1. During the Term. You acknowledge that this Agreement will give you access to valuable and Confidential Information regarding the System, including our business development strategy and the sales, promotional, managing, and marketing methods of dermani MEDSPA®. You agree that during the term of this Agreement, you will not, without our prior written consent, either directly or indirectly through any other person or entity:
- 9.1.1. develop, build, own, maintain, operate, manage, engage in, franchise, or license, or have any direct or indirect controlling or non-controlling interest as an owner – whether of record, beneficially, or otherwise – in a Competitive Business, wherever located or operating (except that an equity ownership of less than five percent (5%) of a Competitive Business whose stock or other forms of ownership interest are publicly traded on a recognized United States stock exchange will not be deemed to violate this subparagraph);
- 9.1.2. be or perform services as a director, officer, manager, employee, consultant, representative, or agent for a Competitive Business, wherever located or operating;
- 9.1.3. divert or attempt to divert any actual or potential business or customer of the Franchised Business to a Competitive Business; or
- 9.1.4. In any manner interfere with, disturb, disrupt, impair, diminish, or otherwise jeopardize our business or that of our affiliates or any of our developers or franchisees.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
Based on the 2025 Dermani Medspa Franchise Disclosure Document, the franchisee agrees that during the term of the agreement, they will not, without Dermani Medspa's prior written consent, be involved in any competitive business. This includes developing, owning, operating, or having any interest in a business that offers similar medical spa products or services.
Additionally, the franchisee cannot perform services for a competitive business or divert any business or customers from the Dermani Medspa franchise. They also cannot interfere with Dermani Medspa's business or that of its affiliates, developers, or franchisees. These restrictions apply during the term of the agreement, emphasizing the importance of adhering to these covenants to avoid potential conflicts of interest and protect Dermani Medspa's business interests.
These covenants and restrictions on competition are designed to protect Dermani Medspa's confidential information, business development strategy, and sales and marketing methods. By agreeing to these terms, franchisees acknowledge the value of the information they receive and commit to not using it to compete with the franchisor during the term of the agreement. Any deviation from these covenants requires the prior written consent of Dermani Medspa.