What remedies, other than termination, does Dermani Medspa have if the franchisee is in default?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
ut limitation, employment, labor, and wage and hour laws, tax laws, local operating regulations, medical, and corporate practice of medicine laws and regulations. You shall timely obtain and maintain any and all permits, certificates, or licenses necessary for the full and proper conduct of the Franchised Businesses and dermani MEDSPA®s contemplated under this Agreement.
- 11.2. Notification of Claims. You shall notify us in writing within five (5) calendar days of receipt of notice of any health or safety violation, the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, or occurrence of any accident or injury which may adversely affect the operation of the business contemplated hereunder or the financial condition of you or give rise to liability or a claim against you or us.
11.3. Indemnification.
- 11.3.1. You agree to indemnify, defend, and hold harmless the Indemnified Parties against, and to reimburse any one or more of the Indemnified Parties for, all claims, obligations, and damages directly or indirectly arising out of the Franchised Business's operation and/or any operations of the dermani MEDSPA®s you manage, the business you conduct under this Agreement, or your breach of this Agreement, unless the claims, obligations, or damages are determined to be caused solely by our gross negligence or willful misconduct in a final, unappealable ruling issued by a court of competent jurisdiction.
- 11.3.2. Each Indemnified Party may defend any claim against it at your expense and agree to settlements or take any other remedial, corrective, or other actions. We have the right to designate attorneys that you must retain to defend any claims subject to this indemnification provision. This indemnity will continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination.
- 11.3.3. An Indemnified Party need not seek recovery from any insurer or other third party, or otherwise mitigate their losses and expenses, in order to maintain and recover fully a claim against you under this subparagraph. You agree that a failure to pursue a recovery or
mitigate a loss will not reduce or alter the amounts that an Indemnified Party may recover from you under this subparagraph.
12. ENFORCEMENT
**12.1.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, Dermani Medspa has several remedies available to them besides terminating the agreement if a franchisee defaults. One such remedy involves indemnification. The franchisee is obligated to indemnify, defend, and hold harmless Dermani Medspa against all claims, obligations, and damages that directly or indirectly arise from the operation of the franchised business, any operations of Dermani Medspas managed by the franchisee, the business conducted under the agreement, or any breach of the agreement by the franchisee. This obligation exists unless the claims, obligations, or damages are determined to be caused solely by Dermani Medspa's gross negligence or willful misconduct, as decided by a court of competent jurisdiction.
Furthermore, Dermani Medspa has the right to defend any claim against it at the franchisee's expense, and can agree to settlements or take other remedial actions. Dermani Medspa can designate the attorneys that the franchisee must retain to defend any claims subject to this indemnification provision. This indemnity remains in effect even after the expiration or termination of the agreement. Dermani Medspa is not required to seek recovery from any insurer or third party, or otherwise mitigate their losses and expenses, in order to maintain and fully recover a claim against the franchisee.
Additionally, the remedies provided to Dermani Medspa by the agreement are not exclusive or exhaustive, but are cumulative and in addition to any other remedies they may have at law or in equity. This means Dermani Medspa can pursue multiple avenues of recourse simultaneously, maximizing their ability to address the franchisee's default and protect their interests. The franchisee also agrees to make each payment required of Franchisee under the Agreement and waive any right to require Franchisor to proceed against Franchisee for any payment required under the Agreement; proceed against or exhaust any security from Franchisee; pursue or exhaust any remedy, including any legal or equitable relief, against Franchisee; or give notice of demand for payment by Franchisee.