Who is responsible for determining whether a revenue-based management fee is permitted under state law for a Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
[Note: Listed below are two management fee structure options: a revenue-based fee and a flat fee. Some states, including Florida and North Carolina, have fee-splitting laws that prohibit the use of a percentage-based management fee, including the revenue-based fee formula set forth below. Other states, such as Tennessee and Georgia, allow this fee structure, but only in certain limited situations. You agree to use a revenue-based management fee structure when permitted by state and federal laws and regulations. If a revenue-based management fee is prohibited by law, You agree to implement a flat fee structure. You acknowledge that You are responsible for evaluating state law to determine whether a revenue-based management fee is permitted and assume full responsibility for compliance with any and all applicable laws and regulations.]
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, the franchisee is responsible for determining whether a revenue-based management fee is permitted by state and federal laws and regulations. Dermani Medspa offers two management fee structure options: a revenue-based fee and a flat fee. However, some states have laws that may prohibit the use of a percentage-based management fee.
The FDD states that the franchisee agrees to use a revenue-based management fee structure when permitted by state and federal laws and regulations. If a revenue-based management fee is prohibited by law, the franchisee agrees to implement a flat fee structure.
This means that prospective Dermani Medspa franchisees must conduct their own due diligence to understand the specific laws and regulations in their state regarding management fees. They will need to consult with legal and financial professionals to ensure compliance. The franchisee assumes full responsibility for compliance with all applicable laws and regulations.