Does Dermani Medspa reserve the right to establish a System Marketing Fund?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
9.2. System Marketing Fund.
- 9.2.1. The image of the dermani MEDSPA® brand, the Marks, Franchised Businesses, and Medspas held by the public in general, by patients, and by Medspa managers and employees, is important to the System and the Marks. We reserve the right to establish a System Marketing Fund for the enhancement and protection of the dermani MEDSPA® brand and Marks, and for the advertising, marketing, and public relations programs and materials.
- 9.2.2. The System Marketing Fund, all contributions thereto, and any earnings thereon, shall be used exclusively (except as otherwise provided in this Section 9.2), in our sole discretion, to meet any and all costs of maintaining, administering, directing, conducting, creating and/or otherwise preparing advertising, marketing, public relations and/or promotional programs and materials, and any other activities which we believe will enhance the image of the System, including, without limitation, the costs of preparing and/or conducting: media advertising campaigns; social media campaigns; Paid per click campaigns; direct
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa retains the right to establish a System Marketing Fund. This fund is intended to enhance and protect the Dermani Medspa brand and its associated marks, as well as to support advertising, marketing, and public relations initiatives.
The System Marketing Fund will be used at Dermani Medspa's discretion to cover various costs related to maintaining, administering, and creating advertising and promotional materials. These activities aim to improve the overall image of the Dermani Medspa system. Dermani Medspa will provide an annual, unaudited statement of the fund's collections and expenses, available for review 120 days after the fiscal year-end.
While Dermani Medspa may use the System Marketing Fund for brand enhancement, it does not guarantee that expenditures will be proportionate to contributions from franchised businesses in specific geographic areas or that any Dermani Medspa franchised business will directly benefit in proportion to its contribution. Dermani Medspa also has the right to use collection agents and legal proceedings to collect contributions to the System Marketing Fund. Although the fund is intended to be perpetual, Dermani Medspa may terminate and reinstate it at any time, requiring franchisees to contribute again upon reinstatement.