Who is responsible for the cost of the Grand Opening Marketing Program for a Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
o Cooperatives currently in existence as of the issuance date of this disclosure document.
Grand Opening Marketing Program
As discussed in Items 5 and 7, in addition to (and not in place of) the System Marketing Fees and local marketing requirement, you must spend at least $20,000 on the Grand Opening Marketing Program.
We will collaborate with you to develop the Grand Opening Marketing Program. Your Grand Opening Marketing Program must include the promotional elements we require, and we must approve of your Grand Opening Marketing Program before it is conducted. We reserve the right to require that you pay to us a Grand Opening Marketing Fee before your dermani MEDSPA® is scheduled to open, so that we may implement the Grand Opening Marketing Plan on your behalf. The Grand Opening Marketing Program must commence at least 60 days before your dermani MEDSPA® opens and will be completed within 60 days after the opening of your dermani MEDSPA®, unless we designate a different time period for you to conduct it. You may spend any additional sums you wish on opening advertising.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–43)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the franchisee is responsible for the cost of the Grand Opening Marketing Program. Dermani Medspa will collaborate with the franchisee to develop the program, but the franchisee must spend at least $20,000 on it, in addition to System Marketing Fees and local marketing requirements. Dermani Medspa reserves the right to collect a Grand Opening Marketing Fee from the franchisee before the Dermani Medspa opens to implement the marketing plan on the franchisee's behalf.
The Grand Opening Marketing Program must start at least 60 days before the Dermani Medspa opens and be completed within 60 days after opening, unless Dermani Medspa specifies a different timeframe. The franchisee can spend additional funds on opening advertising if they choose.
This arrangement is typical in franchising, where franchisees usually bear the costs of local and grand opening marketing to drive initial business. While Dermani Medspa provides assistance in developing the program, the financial responsibility rests with the franchisee, allowing them some control over how the funds are spent, while ensuring a minimum investment for a successful launch.