Does Dermani Medspa require a Waiver of Management Agreement under certain circumstances?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
In certain states, it may be permissible under the existing laws that may be applicable to medical practices and/or medical centers for one entity to both manage and operate the dermani MEDSPA®, including hiring any medical and professional personnel and providing medical services to clients at the dermani MEDSPA®. If you determine that the laws that would apply to a dermani MEDSPA® in your state would permit you to do so, you may request that we waive certain requirements of the Franchise Agreement related to separating the operation of the medical aspects of the dermani MEDSPA® from the management aspects. In particular, depending upon the applicable laws and circumstances, you may not be required to enter into a management agreement with a PC, or be restricted from directly employing Affiliated Physicians. Any waiver or any modification of our standards would be subject to compliance with all applicable laws and regulations. If we agree to a waiver, you must enter into our "Waiver of Management Agreement" (which is Exhibit L to this Disclosure Document). Under the Waiver of Management Agreement, you agree that, instead of entering into the Management Agreement with a separate PC, you will (a) operate the dermani MEDSPA®, including performing all responsibilities and obligations of the "PC" under the Management Agreement, and (b) manage the dermani MEDSPA® as required in the Franchise Agreement and by performing all the responsibilities and obligations of the "Company" under the Management Agreement. As part of this Waiver of Management Agreement, you must represent that you have consulted with an attorney with experience in medical and health care laws and regulations in your state, and she or he has advised you that you may operate the Franchised Business
and the dermani MEDSPA® as one entity. 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 22 — CONTRACTS (FDD page 66)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are generally required to sign a Management Agreement with a Professional Corporation (PC) that employs licensed medical practitioners to provide medical services at the medspa. However, a Waiver of Management Agreement is required if the franchisee's Dermani Medspa is located in a state where one entity is permitted to both manage and operate the medspa, including providing medical services.
The franchisee can request a waiver of certain requirements of the Franchise Agreement related to separating the operation of the medical aspects of the Dermani Medspa from the management aspects. If the laws in the franchisee's state permit them to manage and operate the medspa, they may not be required to enter into a management agreement with a PC or be restricted from directly employing Affiliated Physicians.
If Dermani Medspa agrees to a waiver, the franchisee must enter into their "Waiver of Management Agreement." Under this agreement, the franchisee agrees to operate and manage the Dermani Medspa, performing all responsibilities and obligations of both the PC and the company under the Management Agreement. As part of this waiver, the franchisee must represent that they have consulted with an attorney experienced in medical and healthcare laws in their state and have been advised that they may operate the franchised business and the Dermani Medspa as one entity. Dermani Medspa retains the final determination on whether to permit the waiver.