How is the System Marketing Fee paid to Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
ies to identify which revenues are, and are not, part of Gross Revenue.
We require that you must pay your royalties and System Marketing Fund contributions on a weekly basis. For this purpose, the term "Week" means the period starting with the beginning of business on Monday and concluding at the close of business on the following Sunday (or, if the dermani MEDSPA® is not open on a Sunday, the immediately preceding business day), or any other period of time that we may designate. All payments must be made by electronic funds transfer ("EFT"), and you must establish an appropriate EFT and sign the EFT authorization forms that we specify. Currently, you must send us a report of Gross Revenue and other sales and operating data by close of business on Tuesday, for the Week ending the immediately preceding Sunday. We will draft from your designated bank account, per our EFT process on Wednesday. You must submit or deliver to us any and all reports, statements and/or other information on a timely basis, which may include electronically polled data that we obtain from your point-of-sale system. We may draft funds from your account based on the written or electronically delivered or polled reports. If you fail to make one or more payments on time, we may require that future payments be made by certified, bank, or cashier's check, or another form of payment that we specify.
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- We may require you to contribute an amount equal to up to 2% of the Gross Revenue of the Franchised Business (the "System Marketing Fee") toward the System Marketing Fund (the "System Marketing Fund"). The System Marketing Fee must be paid by you in the same manner as the Royalty Fee. Currently, you are required to contribute 0.25% of your Gross Revenue to the System Marketing Fund.
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Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the System Marketing Fee is paid in the same manner as the Royalty Fee. Dermani Medspa requires franchisees to pay both royalties and System Marketing Fund contributions on a weekly basis. The 'Week' is defined as starting at the beginning of business on Monday and ending at the close of business on the following Sunday (or the preceding business day if the Dermani Medspa is closed on Sunday), or any other period designated by Dermani Medspa. Currently, the System Marketing Fee is 0.25% of Gross Revenue, but Dermani Medspa may require franchisees to contribute up to 2% of Gross Revenue.
Franchisees must submit a report of Gross Revenue and other sales and operating data by close of business on Tuesday for the Week ending the previous Sunday. Payments are made via electronic funds transfer (EFT), and franchisees must establish an appropriate EFT and sign the required authorization forms. Dermani Medspa will draft the funds from the franchisee's designated bank account on Wednesday per the EFT process.
Dermani Medspa may draft funds based on written, electronically delivered, or polled reports from the franchisee's point-of-sale system. If a franchisee fails to make payments on time, Dermani Medspa may require future payments to be made by certified, bank, or cashier's check, or another specified form of payment. Dermani Medspa retains the right to modify its policies regarding revenue recognition, reporting, and the inclusion or exclusion of certain revenue from 'Gross Revenue' as business practices and technology change.