Does Dermani Medspa have the right to acquire businesses that compete with Dermani Medspa franchises?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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
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 the right to acquire businesses that compete with Dermani Medspa franchises. This includes the right to acquire assets or ownership interests in businesses that operate similarly to or compete with Dermani Medspa franchises. 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 in the franchisee's Development Area. If Dermani Medspa acquires or is acquired by such a competing business, it may establish or grant franchises or licenses to establish new or additional competing businesses.
For a prospective franchisee, this means that Dermani Medspa could potentially own or be affiliated with competing businesses, even within their designated territory. While this might raise concerns about competition, the FDD also states that if Dermani Medspa is acquired by a competitor, they will not establish or grant franchises to establish new competing businesses under the Dermani Medspa marks or the acquired chain's marks in the franchisee's territory. However, they may rebrand existing businesses in the territory to use the Dermani Medspa marks and system. It is important for a franchisee to understand these conditions and how they might impact their business.