factual

Does Dermani Medspa have the right to acquire businesses that compete with Dermani Medspa Franchised Businesses?

Dermani_Medspa Franchise · 2025 FDD

Answer from 2025 FDD Document

propriate and regardless of proximity to the Premises or the Development Area;

  • 1.3.2. the right to establish and operate (and to grant to others the right to establish and operate) any other businesses offering products and services that are different from the products or services offered at dermani MEDSPA®s through similar or dissimilar channels of distribution (including, but not limited to: (i) sales through direct marketing, such as over the Internet or through catalogs or telemarketing; (ii) sales through retail stores that do not operate under the Marks; and (iii) sales made at wholesale), at any locations inside or outside the Development Area under trademarks or service marks other than the Marks and on any terms and conditions we deem appropriate;
  • 1.3.3. the right to acquire the assets or ownership interests of one or more businesses that operate, and/or has granted franchises, licenses, or similar rights to one or more third parties to operate, businesses similar to and/or competing with dermani MEDSPA®s and Franchised Businesses related to dermani MEDSPA®s, and/or the right to be acquired by a competing medical business or medical management business, or by another business, even if such business operates, franchises and/or licenses competitive businesses in the Development Area, and that if we acquire, or are acquired by, such a competing business or chain, we may establish or grant franchises or licenses to establish new or additional

competing businesses under the Marks or the acquired chain's marks in your Development Area, and we may rebrand such existing businesses in your Development Area to use the Marks and the System, and it is expressl

Source: Item 23 — RECEIPTS (FDD pages 66–311)

What This Means (2025 FDD)

According to the 2025 Dermani Medspa Franchise Disclosure Document, Dermani Medspa retains specific rights regarding businesses that compete with its franchises. Dermani Medspa has the right to acquire assets or ownership interests in businesses that operate similarly to or compete with Dermani Medspa franchises. This includes the right to acquire businesses that have already granted franchises or licenses to third parties. Dermani Medspa also has the right to be acquired by a competing medical business or medical management business.

This right extends even if the competing business operates, franchises, or licenses competitive businesses within the franchisee's Development Area. If Dermani Medspa acquires or is acquired by such a competing business, it is not restricted from establishing or granting franchises or licenses to establish new or additional competing businesses.

However, if Dermani Medspa acquires or is acquired by a competing business, it will not establish or grant franchises or licenses to establish new or additional competing businesses under the Dermani Medspa marks or the acquired chain's marks in the franchisee's Territory. Dermani Medspa may rebrand existing businesses in the franchisee's Territory to use the Dermani Medspa marks and System. Any existing business operations at the time of the acquisition or transaction will not be considered a breach of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.