factual

What section of the Dermani Medspa Franchise Agreement outlines the franchisee's obligations for site selection and acquisition/lease?

Dermani_Medspa Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

Site Selection

If you do not have a location for the dermani MEDSPA® that we have accepted when you sign the Franchise Agreement, then after you sign the Franchise Agreement you will have 6 months to locate a site for the dermani MEDSPA® and submit to us all of the information we require to evaluate your proposed site. We may provide you with general site selection criteria to assist you in locating a prospective site for the dermani MEDSPA®. The Franchised Business and the dermani MEDSPA® must located at, and operated from, the same site. We typically do not own the premises of a dermani MEDSPA® and lease it to a franchisee.

You shall submit to us in the form we prescribe a description of the proposed site of the dermani MEDSPA®, including evidence reasonably satisfactory to us demonstrating that the site satisfies our site selection guidelines, together with such other information and materials as we may reasonably require. We will have 30 days after we receive this information and materials from you to approve or not approve, in our sole discretion, the proposed site as the location for the dermani MEDSPA®. No site may be used for the location of the dermani MEDSPA® unless it is first approved in writing by us Our approval of a location for the dermani MEDSPA® is not a warranty or guaranty, express or implied, that you will achieve any particular level of success at the location or that your Franchised Business or the dermani MEDSPA® will be profitable. Our acceptance of a location for the dermani MEDSPA® only signifies that the location meets our then-current minimum criteria for a dermani MEDSPA®. If you fail to obtain our approval for a proposed site and open within the requisite time period, then we may terminate the Franchise Agreement.

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

We will review the location you propose for the Premises and, if the site meets our requirements, we will approve the site. (Franchise Agreement, Section 2.1).

We may, but are not obligated to, require that you utilize a real estate broker that we designate, approve or recommend to assist you in locating a site and/or negotiating lease terms for the Premises.

You must execute a lease for the Premises which must be coterminous with the Franchise Agreement, or a binding agreement to purchase the site. We reserve the right to review and approve the terms of the lease or purchase agreement for the Premises, and we reserve the right to require that certain provisions be included in any lease for the Premises. You shall provide us with a copy of the executed lease or purchase agreement. You must also execute a collateral assignment of lease, attached to the Franchise Agreement as Exhibit B.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–30)

What This Means (2025 FDD)

According to the 2025 Dermani Medspa Franchise Disclosure Document, Item 11 discusses the franchisee's obligations regarding site selection and acquisition/lease. Specifically, Section 2.1 of the Franchise Agreement, as referenced in Item 11, covers the review and approval of the proposed location for the premises. Item 11 also mentions that franchisees may be required to use a real estate broker designated, approved, or recommended by Dermani Medspa to assist in locating a site and/or negotiating lease terms.

Item 11 further states that franchisees must execute a lease for the premises that is coterminous with the Franchise Agreement or a binding agreement to purchase the site. Dermani Medspa reserves the right to review and approve the terms of the lease or purchase agreement and may require specific provisions to be included in the lease. Additionally, franchisees are required to provide Dermani Medspa with a copy of the executed lease or purchase agreement and must execute a collateral assignment of lease, which is attached to the Franchise Agreement as Exhibit B.

Prospective Dermani Medspa franchisees should carefully review Section 2.1 of the Franchise Agreement and Exhibit B to fully understand their obligations and Dermani Medspa's rights regarding site selection, lease negotiation, and lease assignment. Franchisees should also inquire about any designated or approved real estate brokers and the criteria used for site approval to ensure they meet Dermani Medspa's requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.