What is the term length of the Trademark Agreement for Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
Our right to use and license others to use the Proprietary Marks is exercised under a trademark license agreement (the "TM Agreement") with LazCoz dated April 22, 2019. Under the TM Agreement, we are granted the right to use and to permit others to use the Marks. The TM Agreement has a 20-year term, with automatic 1-year renewal terms. If we were ever to lose our right to the Marks, LazCoz is required under the TM Agreement to allow our franchisees to maintain their rights to use the Proprietary Marks in accordance with their franchise agreements. Also, the franchise agreements will be assigned to LazCoz. Other than the TM Agreement, there are no agreements in effect which significantly limit our rights to use or license the Marks in any state in a manner material to dermani MEDSPA® franchises.
Source: Item 13 — TRADEMARKS, SERVICE MARKS, TRADE NAMES, LOGOTYPES, AND COMMERCIAL SYMBOLS (FDD pages 46–47)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Trademark Agreement (TM Agreement) between LazCoz and Dermani Medspa, dated April 22, 2019, has an initial term of 20 years. After the initial term, the agreement automatically renews for additional 1-year terms. This agreement grants Dermani Medspa the right to use and license its trademarks to franchisees.
This long-term agreement with automatic renewals provides Dermani Medspa and its franchisees with security and continuity in using the brand's trademarks. The automatic renewal clause ensures that the trademark rights remain in effect unless actively terminated, which is a benefit for franchisees who rely on the brand's recognition.
Furthermore, the FDD states that if Dermani Medspa were to lose its rights to the trademarks, LazCoz is obligated to allow franchisees to maintain their rights to use the trademarks according to their franchise agreements. This provision offers an additional layer of protection for franchisees, ensuring they can continue operating under the Dermani Medspa brand even in adverse circumstances. The franchise agreements would also be assigned to LazCoz in such a scenario.