Does Dermani Medspa have the right to create advertising and promotional materials related to Franchised Businesses and Medspas, even if those materials appear on the Internet or are received by prospective customers within the Territory?

According to the 2025 Dermani Medspa FDD, Dermani Medspa retains the right to create, place, and distribute advertising and promotional materials related to the System, Marks, Franchised Businesses, and Medspas. These materials can appear in any media, including the Internet and similar electronic media, and may be received by prospective customers located anywhere, even within a franchisee's territory. This means that Dermani Medspa has broad control over advertising and marketing efforts, even within a franchisee's designated area.

This reservation of rights allows Dermani Medspa to maintain a consistent brand image and marketing strategy across all locations. It also enables Dermani Medspa to engage in national or regional campaigns that may benefit all franchisees. However, it also means that franchisees have limited control over the advertising and marketing within their own territories and must adhere to Dermani Medspa's standards and specifications.

Furthermore, Dermani Medspa reserves the right to establish a System Marketing Fund to enhance and protect the brand and marks, and for advertising, marketing, and public relations programs. Franchisees may be required to contribute to this fund and participate in advertising and sales promotion programs developed by Dermani Medspa. Franchisees are also restricted from promoting their Medspa on websites or social media without prior written consent from Dermani Medspa, ensuring that all online marketing efforts align with the company's overall strategy.

In summary, while franchisees benefit from the Dermani Medspa's marketing efforts, they must also relinquish some control over advertising and promotion within their territory and adhere to the franchisor's guidelines. This is a common practice in franchising, where maintaining brand consistency and leveraging collective marketing efforts are considered crucial for success.