Does Dermani Medspa have the right to acquire competing businesses?
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 specific rights regarding businesses that compete with Dermani Medspa 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, or by another business, even if that business operates, franchises, and/or licenses competitive businesses in the Development Area.
This clause has implications for a Dermani Medspa franchisee, particularly if Dermani Medspa is acquired by or merges with a competitor. While Dermani Medspa retains the right to acquire competing businesses, there is a stipulation to protect franchisees. If Dermani Medspa acquires or is acquired by a competing business, it will not establish or grant franchises or licenses for new competing businesses under the Dermani Medspa marks or the acquired chain's marks within the franchisee's territory. However, Dermani Medspa may rebrand existing businesses in the franchisee's territory to use the Dermani Medspa marks and system.
It's important to note that any similar business operations that existed at the time of such an acquisition or transaction will not be considered a breach of the agreement. This means that if Dermani Medspa acquires a competing business that already has locations within a franchisee's territory, those existing locations can continue to operate. This could potentially introduce competition within a franchisee's territory, even if new franchises under the same marks are prohibited. A prospective franchisee should carefully consider these possibilities and seek clarification from Dermani Medspa regarding their specific plans for acquisitions and their potential impact on existing franchisees.