What are the time constraints for transferring a Dermani Medspa franchise interest after the death or disability of the franchisee?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
A. Franchise Agreement
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| to you and without restriction. | ||
| k. “Transfer” by you – defined | Section 12.2 | Includes any sale, assignment, gift, conveyance, pledge, mortgage or other encumbrance or disposition of any interest in the Franchise Agreement, the Franchised Business or you (if you are not a natural person). |
| l. Our approval of transfer by you | Section 12.3 | You may not transfer the Franchise Agreement without our prior written consent. We will not unreasonably withhold our consent. Our consent to a transfer is not a waiver of any claims we have against you. |
| m. Conditions for our approval of transfer | Section 12.3 | Your full compliance with the Franchise Agreement; our approval of transferee; you are current in fees owed to us; transferee signs then-current franchise agreement; payment of transfer fee; release signed; you comply with non-competition covenants; all obligations to us satisfied; and others. |
| n. Our right of first | Section 12.6 | We have the right of first refusal if you determine to sell |
| refusal to acquire your | or transfer your interest in the franchisee, the Franchise | |
| business | Agreement or the Franchised Business. | |
| o. Our option to purchase your business | Section 15.5 | Upon termination or expiration of the Franchise Agreement, we have the right to purchase all or a portion of the assets of your Franchised Business at their fair market value. |
| p. Your death or disability | Section 12.5 | Your estate must transfer your interest in the Franchised Business to a third party we approve within 12 months after death or disability. Your estate must appoint a manager within 30 days of death or disability and an Operating Principal within 90 days after death or disability |
| q. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–58)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the time constraints for transferring a franchise interest after the death or disability of the franchisee depend on whether the franchisee has a standard Franchise Agreement or an Area Development Agreement (ADA).
For a standard Franchise Agreement, the franchisee's estate has 12 months after the death or disability to transfer the franchise interest to a third party approved by Dermani Medspa. Additionally, the estate must appoint a manager within 30 days of the death or disability and an Operating Principal within 90 days.
For an Area Development Agreement, the franchisee's estate also has 12 months after the death or disability to transfer the business interest to a Dermani Medspa-approved third party. The estate must appoint a manager to fulfill the obligations under the ADA within 30 days of the death or disability. These stipulations ensure the continued operation of the Dermani Medspa franchise and adherence to brand standards during the transition period.