What is the role of the 'Company' in relation to the Dermani Medspa franchisee?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
dermani MEDSPA Franchising, LLC, a single member Florida limited liability company (the "Company") was originally formed under the laws of the state of Georgia on January 16, 2019. On March 25, 2022, the Company filed Articles of Conversion in accordance with Florida Statues s.605.1045. The trademark name "dermani MEDSPA®" was originally acquired in 2014 by the Member's owners and was transferred to the Company effective April 22, 2019 by a Trademark and System License agreement. The Company's planned principal operations is the franchising of dermani MEDSPA centers that will provide clients with laser hair removal, skin rejuvenation, chemical peels, dermaplanning, injections and other products.
As of December 31, 2022, there were nine franchise centers in operation.
Advertising costs are expensed as incurred and are made at the Company's discretion. Advertising expense for the year ended December 31, 2023 was $161,105.
Franchise sales comprise revenue from the sale or renewal of franchises. A fee is charged upon sale or renewal. Under this arrangement, franchisees are granted the right to operate a center using the "dermani MEDSPA®" system for an initial term of ten (10) years with the right to renew for two (2) additional consecutive successor terms of five (5) years each subject to certain conditions being met. The
Company is required to provide initial training regarding the system and provide assistance in accordance to the Franchise Agreement.
"Manual" – the confidential operations manual that we loan to you to assist you in setting up and establishing the operations of your Franchised Business.
The Company holds system wide marketing fees collected in a restricted cash account. These amounts can only be spent on specified advertising related expenses as noted in the franchisee agreements.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, the 'Company,' identified as dermani MEDSPA Franchising, LLC, plays a central role in the franchise system. It was formed in Georgia on January 16, 2019, and later converted to a Florida limited liability company on March 25, 2022. The Company's primary operation is franchising Dermani Medspa centers, which offer services like laser hair removal, skin rejuvenation, chemical peels, dermaplaning, and injections. The trademark name "dermani MEDSPA®" was acquired in 2014 and transferred to the Company in 2019. As of December 31, 2022, there were nine franchise centers in operation.
The Company grants franchisees the right to operate a center using the "dermani MEDSPA®" system for an initial term of ten years, with the option to renew for two additional five-year terms, subject to meeting certain conditions. As part of the franchise agreement, Dermani Medspa is obligated to provide initial training and assistance to franchisees. The Company recognizes revenue from franchise fees when it fulfills its performance obligations, which include initial training, store location assistance, and granting rights to intellectual property.
Dermani Medspa provides a confidential operations manual to assist franchisees in setting up and operating their franchised businesses. The Company also manages system-wide marketing fees collected in a restricted cash account, which can only be used for specific advertising-related expenses as outlined in the franchise agreements. The Company's advertising expenses for the year ended December 31, 2023, amounted to $161,105, and these expenses are made at the Company's discretion.
Overall, the Company functions as the franchisor, providing the system, trademarks, training, and support necessary for franchisees to establish and operate Dermani Medspa centers. It also retains rights over the franchised businesses, the system, and the marks, ensuring the consistency and quality of the Dermani Medspa brand. Prospective franchisees should understand that the Company's role is crucial in guiding and supporting their business operations, but also in setting the standards and guidelines they must adhere to.