Can Dermani Medspa require a franchisee to modify or discontinue using a trademark?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Dermani Medspa has the authority to direct franchisees to modify or discontinue the use of any mark. If Dermani Medspa deems it advisable, franchisees must immediately comply with directions to change or stop using a trademark, or to adopt additional or substitute marks for the Dermani Medspa business.
This requirement means that a Dermani Medspa franchisee may be forced to rebrand their location at their own expense if the franchisor determines it is necessary. The FDD states that neither Dermani Medspa nor its affiliates are obligated to reimburse franchisees for any expenses incurred due to such modifications or discontinuations.
This is a significant risk for potential franchisees. Typically, established franchise systems bear some of the costs associated with rebranding, especially if the change is mandated by the franchisor. The franchisee should carefully consider the potential financial burden of rebranding and negotiate for some level of financial support from Dermani Medspa in such an event.