When is the Royalty fee due for a Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 5% of Gross Revenue | Each Week, on or before the Wednesday of each week calculated on the Gross Revenue for the prior Week | See Note 2 for the definition of “Gross Revenue” and “Week.” |
We require that you must pay your royalties and System Marketing Fund contributions on a weekly basis. For this purpose, the term "Week" means the period starting with the beginning of business on Monday and concluding at the close of business on the following Sunday (or, if the dermani MEDSPA® is not open on a Sunday, the immediately preceding business day), or any other period of time that we may designate. All payments must be made by electronic funds transfer ("EFT"), and you must establish an appropriate EFT and sign the EFT authorization forms that we specify. Currently, you must send us a report of Gross Revenue and other sales and operating data by close of business on Tuesday, for the Week ending the immediately preceding Sunday. We will draft from your designated bank account, per our EFT process on Wednesday.
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the royalty fee is due each week. Specifically, the royalty fee, which is 5% of Gross Revenue, must be paid on or before the Wednesday of each week. This payment is calculated based on the Gross Revenue earned during the prior week. Dermani Medspa requires that franchisees submit a report of Gross Revenue and other sales and operating data by close of business on Tuesday, for the Week ending the immediately preceding Sunday. Dermani Medspa will then draft the royalty payment from the franchisee's designated bank account on Wednesday via electronic funds transfer (EFT).
This weekly royalty payment schedule means that Dermani Medspa franchisees need to maintain diligent accounting practices to accurately track and report their gross revenues each week. The use of electronic funds transfer (EFT) for royalty payments is a fairly standard practice in franchising, as it ensures timely and consistent payments to the franchisor.
Prospective Dermani Medspa franchisees should be aware of these requirements and ensure they have the systems in place to comply with the weekly reporting and payment schedule. Failure to make timely payments can result in penalties or other enforcement actions by Dermani Medspa.