Does Dermani Medspa require the use of a standard form of Management Agreement?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
You must use our standard form of Management Agreement; provided, however, that you should revise any provisions as necessary in order to be consistent with applicable state law, and based on advice you receive from your lawyers and other advisors, and you may negotiate the monetary terms and, with our written consent, certain other terms of the relationship with the PC. You must obtain our written approval of the final Management Agreement prior to its execution. We must approve the PC candidate. You shall ensure that the types of services available through the PC are limited to those in accordance with and pursuant to this Agreement and that the PC is operated in accordance with the Management Agreement. You shall have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business. In the event the Management Agreement with the PC is terminated during the Initial Term, you shall enter into a new Management Agreement with a replacement PC as soon as practicable, but in no event later than one hundred twenty (120) days after you provide or receive notice that the Management Agreement with the original PC is being terminated. In the event applicable state law does not require the use of a management agreement between you and a PC, as determined by you and your counsel, we may waive certain requirements and require you to execute our waiver of management agreement ("Waiver of Management Agreement"). If you qualify to enter into the Waiver of Management Agreement, we will make the final determination whether we will permit the waiver or not.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are generally required to use Dermani Medspa's standard form of Management Agreement when contracting with a Professional Corporation (PC) to provide medical services. This agreement governs the relationship between the franchisee and the PC, ensuring that the PC operates in accordance with the franchise agreement and provides services within the scope defined by Dermani Medspa.
However, the requirement to use the standard Management Agreement is not absolute. Franchisees have the flexibility to revise provisions of the agreement to comply with applicable state laws, based on advice from their legal counsel and advisors. They can also negotiate the monetary terms and, with Dermani Medspa's written consent, certain other terms of the agreement with the PC. It is important to note that the final Management Agreement requires Dermani Medspa's written approval before it is executed, and Dermani Medspa must also approve the PC candidate.
In situations where state law does not mandate a management agreement between the franchisee and a PC, Dermani Medspa may waive the requirement for a Management Agreement. In such cases, the franchisee may be required to execute a Waiver of Management Agreement. However, even if the franchisee qualifies for a waiver, Dermani Medspa retains the final discretion to determine whether to permit the waiver or not. Franchisees must ensure a Management Agreement is in effect with a PC at all times during operation, with a 120-day window to establish a new agreement if the original is terminated.