Are the services at a Dermani Medspa provided by employees of the franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
or changed items.
The dermani MEDSPA® will be operated by one or more physicians licensed to provide medical spa services in the state in which the dermani MEDSPA® is located. The physician or physicians will form a professional entity, which is a professional corporation, professional limited liability company, service corporation, or similar entity, referred to as a "PC," that will provide medical services to clients at the dermani MEDSPA®. In addition to signing the Franchise Agreement with us, before you begin operating the Franchised Business, you must enter into a management agreement ("Management Agreement") with the PC.
You must sign a Management Agreement with a PC unless your dermani MEDSPA® will be in a state that permits one entity to both manage and operate the dermani MEDSPA®, including providing medical services from the dermani MEDSPA®. If you are in a state that permits you to both manage the dermani MEDSPA® and provide medical services, you must sign our Waiver of Management Agreement. More information about the Waiver of Management Agreement is provided below. In the event applicable state law permits franchisees to operate the dermani MEDSPA®, or does not require a PC, then you as the owner of the Franchised Business must satisfy and comply with all other requirements that would otherwise pertain to the PC (for example, obtaining and maintaining professional liability coverage as discussed in Item 8).
We must approve the PC candidate. Under the Management Agreement, you will provide the PC with management and administrative services and support consistent with the System to support the PC's practice and its delivery of medical spa services and related products to clients at the dermani MEDSPA®, consistent with all applicable laws and regulations. The services the Franchised Business will provide to the dermani MEDSPA® include billing and collections, business planning, accounts payable management, bookkeeping and financial management, client records maintenance, management of administrative staff, arranging for the PC to obtain and maintain professional liability insurance, marketing and promotional activities, and arranging legal services and credentialing support. Unless otherwise approved by us, you must use our standard form of Management Agreement, but you may negotiate the monetary terms and, with our written consent, certain other terms of the relationship with the PC. It is your sole responsibility to make sure your Management Agreement is compliant with all state and local laws and must be reviewed by a healthcare attorney knowledgeable in the laws of the state you will be operating. You must have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business and the term of the Franchise Agreement. The Management Agreement may not be signed by you or the PC until we have approved of the Management Agreement and its negotiated terms.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, the medical spa and cosmetic services are generally provided by a separate professional entity (PC) comprised of licensed physicians or medical personnel supervised by a physician, and professionally licensed persons or entities, not the franchisee directly. The PC employs and controls the medical staff, such as physician assistants, nurse practitioners, estheticians, and cosmetic injectors, who deliver the medical services. The franchisee's role is to manage the Dermani Medspa and provide administrative support to the PC, not to provide medical services themselves. This separation is due to state and federal laws regarding the practice of medicine.
However, there is an exception. In certain states where the laws permit, a franchisee may be allowed to both manage and operate the Dermani Medspa, including hiring medical personnel and providing medical services. In this case, the franchisee may request a waiver of the requirement to have a separate PC. If the waiver is granted, the franchisee assumes the responsibilities of both the management company and the PC, ensuring compliance with all applicable laws and regulations.
Prospective franchisees should be aware of the legal structure required in their specific state and consult with a healthcare attorney to ensure compliance. The franchisee must also secure and maintain all required licenses and ensure that all medical personnel are appropriately licensed. The relationship between the franchisee and the PC must comply with all laws and regulations, and the PC must also maintain all required licenses and permits.