Will Dermani Medspa reimburse a franchisee for costs associated with actions taken to protect the trademarks?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to notify us immediately of any apparent infringement or challenge to your use of any Mark, or of any person's claim of any rights in any Mark, and not to communicate with any person other than us, our attorneys, and your attorneys, regarding any infringement, challenge, or claim. We may take the action we deem appropriate (including no action) and control exclusively any litigation, U.S. Patent and Trademark proceeding, or other administrative proceeding arising from any infringement, challenge, or claim or otherwise concerning any Mark. You agree to sign any documents and take any other reasonable action that, in the opinion of our attorneys, are necessary or advisable to protect and maintain our interests in any litigation or U.S. Patent and Trademark or other proceeding or otherwise to protect and maintain our interests in the Marks. We will reimburse you for your costs of taking any action that we have asked you to take.
We agree to reimburse you for all damages and expenses that you incur in any trademark infringement proceeding disputing your authorized use of any Mark under this Agreement, provided you have notified us immediately upon your becoming aware of such infringement, you comply with our directions in responding to the proceeding, and you have used the Mark(s) in compliance with this Agreement, the Manual, and other directives from us. At our option, we may defend or control the defense of any proceeding arising from your use of any Mark under this Agreement.
If it becomes advisable at any time in our sole judgment for you to modify or discontinue using any Mark or for you and the dermani MEDSPA® to use one or more additional or substitute trade or service marks, you will have to immediately comply with our directions. Neither we nor our affiliates will have any obligation to reimburse you for any expenditures you make because of any discontinuance or modification.
Source: Item 13 — TRADEMARKS, SERVICE MARKS, TRADE NAMES, LOGOTYPES, AND COMMERCIAL SYMBOLS (FDD pages 46–47)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees may be reimbursed for certain costs related to protecting the brand's trademarks. Dermani Medspa requires franchisees to notify them immediately of any potential infringement or challenges to the use of their marks. Franchisees are not to communicate with anyone other than Dermani Medspa, their attorneys, or the franchisee's attorneys regarding any infringement, challenge, or claim. Dermani Medspa retains exclusive control over any litigation or proceedings concerning the marks and will decide what action, if any, to take.
Dermani Medspa will reimburse franchisees for the costs of taking action specifically requested by them. Additionally, Dermani Medspa will reimburse franchisees for all damages and expenses incurred in a trademark infringement proceeding if the franchisee's authorized use of the mark is disputed, provided the franchisee notifies Dermani Medspa immediately upon becoming aware of the infringement, complies with their directions in responding to the proceeding, and has used the marks in compliance with the Franchise Agreement, the Manual, and other directives from Dermani Medspa. Dermani Medspa has the option to defend or control the defense of any proceeding arising from the franchisee's use of any Mark under the Franchise Agreement.
However, franchisees should note that Dermani Medspa is not obligated to reimburse them for any expenditures resulting from the discontinuance or modification of any Mark if, in Dermani Medspa's judgment, such changes become advisable. This means that if Dermani Medspa decides to change a trademark, franchisees will bear the costs associated with updating signage, marketing materials, and other branded items. This is a potential risk for franchisees, as they may incur unexpected expenses if Dermani Medspa decides to rebrand or modify its trademarks.