What section of the Dermani Medspa Franchise Agreement outlines the franchisee's obligations regarding territorial development?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
1. GRANT OF DEVELOPMENT RIGHTS; TERRITORY
- 1.1. Grant of Development Rights.
Pursuant to the terms and conditions of this Agreement, we hereby grant to you the right, and you accept the obligation, to develop a specified number of Franchised Businesses in the Development Area, as set forth Exhibit A attached hereto.
In this regard, you further agree:
- 1.1.1. To develop the Franchised Businesses and dermani MEDSPA®s pursuant to the development schedule set forth in Paragraph 3 of Exhibit A attached hereto (the "Development Schedule").
If at any time during the term of this Agreement you fail to satisfy the Development Schedule, then we have the right, but not the obligation, to exercise our termination rights and other rights pursuant to Section 8 below;
1.1.2. that each dermani MEDSPA® developed under this Agreement must be established and managed by a Franchised Business pursuant to a separate dermani MEDSPA® Franchise Agreement (a "Franchise Agreement") that must be executed as provided in Section 3.1 below; and
1.1.3. that each Franchised Businesses and dermani MEDSPA® developed under this Agreement must be located within the area that is specified in Paragraph 2 of Exhibit A, attached hereto (the "Development Area").
1.2. No Protections to Development Area.
Your rights within the Development Area are nonexclusive, and we may award the same Development Area to multiple area developers.
However, we will not sell the right to develop more dermani MEDSPA®s than the total number of available territories available in the Development Area.
- 1.3. Rights we Reserve.
We retain all rights with respect to Franchised Businesses and dermani MEDSPA®s, the System, the Marks, the sale of similar or dissimilar services, and any other activities we deem appropriate whenever and wherever we desire, including, but not limited to:
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–30)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, Item 23, titled "Receipts," and specifically section 1.1, outlines the franchisee's obligations regarding territorial development. This section states that the franchisee is granted the right and accepts the obligation to develop a specified number of Franchised Businesses in the Development Area, as detailed in Exhibit A of the agreement.
The franchisee further agrees to develop the Franchised Businesses and dermani MEDSPA®s according to the development schedule set forth in Paragraph 3 of Exhibit A, referred to as the "Development Schedule". Failure to meet this schedule gives Dermani Medspa the right, but not the obligation, to terminate the agreement. Each dermani MEDSPA® developed must be established and managed under a separate dermani MEDSPA® Franchise Agreement, and each Franchised Business must be located within the area specified in Paragraph 2 of Exhibit A, known as the "Development Area".
The FDD specifies that the franchisee's rights within the Development Area are nonexclusive, and Dermani Medspa may award the same Development Area to multiple area developers. However, Dermani Medspa will not sell the right to develop more dermani MEDSPA®s than the total number of available territories in the Development Area. Dermani Medspa retains all rights regarding Franchised Businesses and dermani MEDSPA®s, the System, the Marks, and the sale of similar or dissimilar services.