What taxes am I responsible for paying in connection with my Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Revenue"– the Gross Revenue of the Franchised Business means all of the dermani MEDSPA®'s revenue generated from the sale of all medical spa and cosmetic services related to skin, cosmetic injectables, laser hair removal treatments, membership fees, and all other products and services offered at or from the dermani MEDSPA®, and all other income of every kind and nature related to, derived from, or originating from the dermani MEDSPA®, whether at retail or wholesale, including off-premises services, mobile clinics, and temporary locations (whether these sales are permitted or not), and proceeds of any business interruption insurance policies, whether any of the products or services are sold for cash, check, or credit, and regardless of collection in the case of check or credit; except that "Gross Revenue" excludes any tips received by any staff or personnel who will provide the actual medical services, clients
customer refunds, discounts from coupon sales, rebates, sales taxes, and/or other taxes collected from customers by you and actually transmitted to the appropriate taxing authorities.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are responsible for collecting and transmitting sales taxes to the appropriate taxing authorities. The FDD specifies that 'Gross Revenue' for a Dermani Medspa excludes sales taxes collected from customers that you then transmit to the appropriate authorities. This indicates that franchisees act as collectors of sales tax on behalf of the government.
Beyond sales taxes, the FDD does not provide a comprehensive list of all taxes a Dermani Medspa franchisee might be responsible for. As a business owner, you should consult with a tax professional to ensure you understand and comply with all applicable federal, state, and local tax laws. These may include income tax, self-employment tax, payroll tax if you have employees, and other taxes specific to your location and business structure.
It is important to note that tax laws can change, so staying informed and seeking professional advice is crucial for maintaining compliance and accurately managing your Dermani Medspa franchise's tax obligations. The dermani MEDSPA® franchise agreement does not offer tax advice, so it is essential to seek guidance from qualified professionals.