exception

Are there any exceptions to the sourcing restrictions for Dermani Medspa franchisees?

Dermani_Medspa Franchise · 2025 FDD

Answer from 2025 FDD Document

Notwithstanding the foregoing, we acknowledge and agree that the selection and use of any equipment and products used in connection with medical services provided by the PC to its clients will be subject to the PC's approval based on the professional opinion of the PC's physicians.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–28)

What This Means (2025 FDD)

According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees must adhere to strict sourcing guidelines to maintain quality and service standards. Generally, franchisees are required to purchase products, supplies, equipment, and services from suppliers that meet Dermani Medspa's specifications and have been approved in writing. This includes a wide range of items, from design and image elements like décor and signs to medical equipment, computer systems, and even real estate brokers and construction contractors. Dermani Medspa reserves the right to be the sole approved supplier for any product or service.

However, there is an exception regarding medical services. The selection and use of equipment and products used in connection with medical services provided by the franchisee's professional corporation (PC) are subject to the PC's approval based on the professional opinion of its physicians. This means that while Dermani Medspa mandates approved suppliers for most aspects of the business, the PC has the final say in the medical equipment and products used for medical services.

If a franchisee wishes to use a product, service, or supplier that hasn't been previously approved, they must submit a written request for approval and pay an evaluation fee, covering Dermani Medspa's costs for testing and inspection. Dermani Medspa has 30 days to provide a decision. Even with approval, Dermani Medspa retains the right to re-inspect and revoke approval if the supplier fails to meet their standards. This system allows for some flexibility while ensuring that Dermani Medspa maintains control over quality and consistency across all franchise locations, except for the specific exception granted to the PC regarding medical services.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.