Is Dermani Medspa a third-party beneficiary of the non-disclosure and non-competition agreements that the franchisee uses?

According to the 2025 Dermani Medspa Franchise Disclosure Document, Dermani Medspa is a third-party beneficiary of the non-disclosure and non-competition agreements that the franchisee uses. Specifically, Exhibit F outlines a confidentiality and non-competition agreement for trained employees, shareholders, officers, directors, general partners, members, and managers of the franchisee.

The agreement ensures that these individuals are bound by confidentiality and non-competition terms, protecting Dermani Medspa's interests. This is achieved because the member, by virtue of their position with the developer, will gain access to certain of Franchisor's Confidential Information and must therefore be bound by the same confidentiality and non-competition agreement that Developer is bound by.

This agreement is crucial for protecting Dermani Medspa's confidential information, operational methods, and market position. By having these individuals sign the agreement, Dermani Medspa aims to prevent the dissemination of sensitive information and restrict competitive activities that could harm the franchise system. This is a common practice in franchising to safeguard the brand's proprietary assets and maintain a competitive edge.

Prospective franchisees should carefully review Exhibit F and understand the implications of these agreements for their employees and associates. It is important to ensure that all relevant parties are aware of and comply with these obligations to avoid potential legal issues and protect the Dermani Medspa system.