When does the Trademark Agreement for Dermani Medspa automatically renew?
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) with LazCoz, which grants Dermani Medspa the right to use and permit others to use the marks, has specific terms regarding its duration and renewal. The TM Agreement is dated April 22, 2019, and has an initial term of 20 years.
Following the initial 20-year term, the TM Agreement automatically renews for subsequent one-year terms. This means that unless action is taken to terminate the agreement, it will continue to extend annually. This automatic renewal clause provides a level of assurance for Dermani Medspa franchisees that the rights to use the trademarks will likely continue, assuming the agreement remains in good standing.
It is important to note that if Dermani Medspa were to lose its right to the marks, LazCoz is obligated under the TM Agreement to allow franchisees to maintain their rights to use the proprietary marks in accordance with their franchise agreements. Additionally, the franchise agreements would be assigned to LazCoz. This provision offers some protection to franchisees, ensuring their continued use of the trademarks even if the relationship between Dermani Medspa and LazCoz changes.