How is 'Rent' defined for the purpose of Dermani Medspa's financial performance representation?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
s or expenses for items such as Coolsculpting® cycles that will not be used, offered or sold at franchised dermani MEDSPAs®, those costs were excluded from the "Cost of Goods Sold.
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- "Rent" means the total amount that each Franchised Location reported as paying during the Measurement Period.
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Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 58–61)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, when presenting financial performance representations for franchised locations, 'Rent' is defined as the total amount that each Franchised Location reported as paying during the Measurement Period. This definition is used in the context of the financial performance representation for the 2024 calendar year.
For company-owned locations, 'Rent Expense' is defined as the total amount that each Company Location paid to its landlord for rent, CAM (Common Area Maintenance), and all other expenses charged by the respective landlord during the Measurement Period. This definition is relevant to the financial performance representation for the 2024 calendar year for company-owned locations.
Prospective Dermani Medspa franchisees should understand that 'Rent' or 'Rent Expense' includes not only the base rent but also additional charges from the landlord, such as CAM fees. This comprehensive definition ensures that the financial performance representation accurately reflects the total cost associated with leasing the premises. Franchisees should factor in these additional expenses when projecting their own operating costs and profitability. The FDD specifies that the financial information is based on unaudited data reported by affiliates, and written substantiation is available upon request.