Does Dermani Medspa retain the right to modify System Standards?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
y obtain comparable insurance for you and the Franchised Business on your behalf, in which event you shall cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a ten percent (10%) administrative fee for our time incurred in obtaining the insurance.
8.7. Compliance with System Standards.
8.7.1. You acknowledge and agree that operating and maintaining the Franchised Business according to System Standards is essential to preserve the goodwill of the Marks and all
Franchised Businesses and Medspas. Therefore, you agree at all times to operate and maintain the Franchised Business according to all of our System Standards. Although we retain the right to establish and periodically modify System Standards, you retain the right to and responsibility for the day-to-day management and operation of the Franchised Business and implementing and maintaining System Standards at the Franchised Business. If you fail to implement, maintain, and/or comply with System Standards, we may terminate your right to operate the Franchised Business, and/or take other actions to enforce the System Standards.
- 8.7.2. As examples, and without limitation, recommended and mandatory System Standards may regulate any one or more of the following, in addition to the items described in Sections 8.1 through 8.6 above:
- (a) all management and administrative services provided to the Medspa or otherwise used in connection with operating the Franchised Business;
- (b) maintaining a competent, conscientious, trained staff in numbers sufficient to promptly service customers. You shall comply with all applicable employment and wage and hour laws and regulations.
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 and periodically modify System Standards. However, the franchisee retains the right to and responsibility for the day-to-day management and operation of the Franchised Business and implementing and maintaining System Standards at the Franchised Business.
The FDD specifies that modifications to System Standards may require franchisees to invest additional capital in the Franchised Business and/or incur higher operating costs. Franchisees are obligated to implement any changes in System Standards within the time period Dermani Medspa requests, whether they involve refurbishing or remodeling the Premises or any other aspect of the Franchised Business, buying new Operating Assets, adding new services, or otherwise modifying the nature of their operations, as if they were part of this Agreement as of the Effective Date.
System Standards are defined in the FDD as the mandatory and suggested specifications, standards, operating procedures and rules that Dermani Medspa prescribes for the management and operation of the Franchised Business and dermani MEDSPA®. Failure to implement, maintain, and/or comply with System Standards may result in termination of the right to operate the Franchised Business, and/or other actions to enforce the System Standards.