Does Dermani Medspa require a Collateral Assignment of Lease as part of its franchising agreements?

According to Dermani Medspa's 2025 Franchise Disclosure Document, Exhibit B to the Dermani Medspa Franchise Agreement is titled "COLLATERAL ASSIGNMENT OF LEASE". This indicates that Dermani Medspa requires a Collateral Assignment of Lease as part of its franchising agreements.

A collateral assignment of lease is a legal agreement where a tenant (the franchisee in this case) assigns their rights and interests in a lease to a third party (the franchisor) as collateral for a loan or other obligation. This means that if the franchisee defaults on their obligations to the franchisor, the franchisor has the right to take over the lease and operate the business at that location.

For a prospective Dermani Medspa franchisee, this requirement means they must be willing to assign their lease to Dermani Medspa Franchising LLC as collateral. This protects Dermani Medspa's interests by ensuring they can maintain control of the business location if the franchisee fails to meet their obligations. Franchisees should carefully review the terms of the collateral assignment of lease to understand their rights and obligations.