Is Dermani Medspa required to grant a waiver of the management agreement if the franchisee qualifies?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
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 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, whether Dermani Medspa grants a waiver of the management agreement to a franchisee who qualifies is not guaranteed. The FDD states that if a franchisee determines that the laws in their state permit them to both manage and operate the Dermani Medspa, including hiring medical personnel and providing medical services, they may request a waiver.
However, even if the franchisee meets the legal requirements and requests a waiver, Dermani Medspa retains the final determination on whether to permit the waiver. If Dermani Medspa agrees to a waiver, the franchisee must enter into the "Waiver of Management Agreement," outlined in Exhibit L of the FDD. This agreement stipulates that the franchisee will operate and manage the Dermani Medspa, fulfilling the responsibilities typically assigned to a separate professional corporation (PC) under the standard Management Agreement.
As part of the Waiver of Management Agreement, the franchisee must also represent that they have consulted with an attorney experienced in medical and healthcare laws in their state and have been advised that they can operate the franchised business and the Dermani Medspa as a single entity. Therefore, while franchisees can request a waiver if they meet certain conditions, Dermani Medspa ultimately decides whether to grant the waiver.