Is the System Marketing Fund considered an asset of Dermani Medspa?

According to Dermani Medspa's 2025 Franchise Disclosure Document, the System Marketing Fund is not considered an asset of Dermani Medspa. Although the fund is not a trust, Dermani Medspa will hold all contributions for the benefit of the system, the Dermani Medspa brand, and the contributors, and will only use the contributions for purposes described in the Franchise Agreement. Dermani Medspa does not owe any fiduciary obligation for administering the System Marketing Fund.

This means that while Dermani Medspa manages the System Marketing Fund, the money within it is intended to be used for the benefit of the franchisees and the overall brand, rather than being considered company assets. Dermani Medspa has the right to use collection agents and institute legal proceedings to collect System Marketing Fund contributions at the System Marketing Fund's expense. Dermani Medspa may also forgive, waive, settle, and compromise all claims by or against the System Marketing Fund.

Although the System Marketing Fund is intended to be perpetual, Dermani Medspa may terminate the System Marketing Fund at any time. The System Marketing Fund will not be terminated until all monies in the System Marketing Fund have been spent. If Dermani Medspa terminates the System Marketing Fund, it has the right to reinstate it at any time, and franchisees must again contribute to the System Marketing Fund. Any reinstated System Marketing Fund will be maintained as described in the FDD.