What does Dermani Medspa state regarding the risk of investment in a Franchised Business?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
As you have reviewed the financial performance representations in Item 19 of the Disclosure Document, do you understand that: a.
Item 19 contains only historical data from certain franchised and/or affiliate-owned dermani MEDSPA®s, and are not a promise, assurance or guaranty of future results of your Franchised Business; b. your results are likely to differ from the historical results reported; c. your results as a start-up business and Franchised Business are likely to be different than existing dermani MEDSPA®s; and d. you have had ample opportunity to review Item 19 with a lawyer, accountant and/or other advisor of your choosing.
Yes No 24.
Do you understand: a. that this franchise business may be impacted by other risks, including those outside your or our control such as local, national or global economic, political or social disruption, such as the 2020 COVID-19 outbreak; b. that such disruptions, and any preventative, protective, or remedial actions that federal, state, and local governments may take in response to a disruption may result in a period of business disruption, reduced customer demand, and reduced operations for dermani MEDSPA®s, and may require that we take actions that might not be contemplated under the Franchise Agreement; and c. the extent to which any such disruption impacts the dermani MEDSPA® system, and your franchise business, will depend on future developments which are highly uncertain and which we cannot predict?
Yes No 25.
If no, please comment: We encourage and strongly recommend that all prospective franchisees contact and speak with existing franchisees as part of your review and diligence process, to inquire about their operations and experience.
If you have done so, please identify the franchisees with whom you have communicated: 1 2 3 Others:
If you did not contact any franchisees, please explain why: 26.
EXHIBIT M FRANCHISEE COMPLIANCE CERTIFICATION
THE DERMANI MEDSPA® FRANCHISING LLC FRANCHISEE COMPLIANCE CERTIFICATION
As you know, dermani MEDSPA® Franchising LLC (the "Franchisor") and you are preparing to enter into a Franchise Agreement for the establishment and operation of a franchised business (the "Franchised Business") that will manage a "dermani MEDSPA®" (the "dermani MEDSPA®"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you that the Franchisor has not authorized and that may be untrue, inaccurate or misleading. Please review each of the following questions and statements carefully and provide honest and complete responses to each.
Another goal in asking you these questions is to be confident that you are prepared to become a dermani MEDSPA franchisee, that you understand the risks of owning your own business, and that we have complied with our obligations in providing you with the information required by law.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, prospective franchisees must acknowledge the risks associated with investing in a Dermani Medspa franchise. Item 19 contains historical data from existing franchised and affiliate-owned locations, but Dermani Medspa does not guarantee that new franchisees will achieve similar results. The document emphasizes that a new franchise's performance will likely differ from past results and established Dermani Medspa locations. Dermani Medspa recommends that prospective franchisees consult with legal, accounting, and business advisors to fully understand Item 19.
The FDD also states that external factors beyond the control of Dermani Medspa or the franchisee can impact the business. These risks include economic, political, and social disruptions at the local, national, or global level, such as the COVID-19 pandemic. Such events can lead to business interruptions, reduced customer demand, and operational challenges for Dermani Medspa franchises. Franchisees must acknowledge that the extent of these impacts is uncertain and unpredictable.
Dermani Medspa encourages prospective franchisees to contact existing franchisees to discuss their experiences and operational insights. Franchisees are required to sign a Franchisee Compliance Certification, confirming they understand the risks of owning their own business and that Dermani Medspa has provided all legally required information. This process ensures franchisees are aware of the potential challenges and uncertainties involved in operating a Dermani Medspa franchise.