When is the Territory designated for a Dermani Medspa franchise?

According to Dermani Medspa's 2025 Franchise Disclosure Document, the territory for a franchise is designated after the franchisee proposes and Dermani Medspa approves the location (Premises) for each Dermani Medspa. The size of the territory will vary but generally will be the lesser of a 2-mile radius or a population of 75,000 individuals. This designated territory is specified in the Franchise Agreement.

It's important to note that while Dermani Medspa grants a protected territory, this protection is limited. Dermani Medspa retains the right to operate or license others to operate similar businesses under different names outside the franchisee's territory. They also reserve the right to engage in other business activities, such as direct marketing or sales through retail stores that do not operate under the Dermani Medspa marks, both inside and outside the territory.

Furthermore, Dermani Medspa has the right to acquire competing businesses, even those operating within the franchisee's territory. While they agree not to establish new competing businesses under the Dermani Medspa marks in the franchisee's territory if they acquire a competitor, they may rebrand existing businesses to use the Dermani Medspa marks. These stipulations highlight that while a territory is designated, Dermani Medspa retains considerable flexibility to operate and compete within and around that territory.

If a franchisee signs an Area Development Agreement, they will receive a Development Area, but their rights within this area are non-exclusive. Dermani Medspa may award the same Development Area to multiple developers. However, once a franchisee secures an approved site under a Franchise Agreement within their Development Area, Dermani Medspa will grant a protected territory around that specific Dermani Medspa location, as discussed above.