Is the Dermani Medspa Software Fee a pass-through cost?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
ement Agreement at Exhibit J, the terms of which are hereby incorporated into and become effective with the execution of this Agreement. You agree to execute an amended Business Associate Agreement to the extent we determine such an amended agreement is necessary.
- 2.4.6. Prior to opening the Medspa, you shall pay us an one-time software licensing fee associated with computer software that we may require for use in your Medspa and/or are developing, utilizing, or enhancing for use in Medspas as we deem necessary in our sole discretion (the "Initial Licensing Fee"). In any event, the Initial Licensing Fee shall not exceed Two Thousand Five Hundred Dollars ($2,500).
- 2.4.7.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
Based on the 2025 Dermani Medspa Franchise Disclosure Document, franchisees must pay a one-time software licensing fee before opening their medspa. This fee is associated with computer software that Dermani Medspa requires for use in the medspa or is developing, utilizing, or enhancing for use in medspas, as Dermani Medspa deems necessary. The FDD refers to this as the "Initial Licensing Fee." The Initial Licensing Fee will not exceed $2,500.
The FDD does not explicitly state whether this software licensing fee is a pass-through cost, meaning it's unclear if the fee directly reflects the cost Dermani Medspa incurs from a third-party software provider, or if Dermani Medspa retains some or all of the fee. The FDD states that Dermani Medspa has the right to specify the information that franchisees must collect and maintain through the Computer System. Franchisees may not install any software, other than authorized upgrades, or make any hardware modifications to the Computer System that might hamper or interfere with the operation of the Computer System in the manner Dermani Medspa requires.
Given this lack of clarity, prospective Dermani Medspa franchisees should directly ask the franchisor whether the software licensing fee is a pass-through cost. If it is not a direct pass-through, understanding how Dermani Medspa determines the fee amount and what portion, if any, is retained by the franchisor would be beneficial. Additionally, franchisees should inquire about any potential future software upgrades or ongoing software fees and how those costs will be handled.