How is the Transfer Fee calculated for a Dermani Medspa franchise transfer?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
If a proposed transfer would result in a change in control of you, your business, or any of your assets, including any dermani MEDSPA® franchises owned, operated, managed, or controlled by you, you shall pay a non-refundable transfer fee ("Transfer Fee")
- (i) You pay us a transfer fee ("Transfer Fee") equal to fifty percent (50%) of our then-current initial franchise fee for a single unit franchise, to reimburse us for reviewing the application to transfer, including, without limitation, legal and accounting fees.
One-half (½) of the Transfer Fee shall be paid at the time you submit your request to us for consideration of the proposed transfer, and such amount shall be non-refundable.
The balance of the Transfer Fee shall be paid at the time the transfer is consummated or closes.
If the transfer is not consummated after we have provided our approval for the proposed transfer, then we have the right to require that you or the proposed transferee reimburse us for the out-ofpocket expenses (including attorneys' fees) that we incurred in connection with the proposed transfer.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, a franchisee must pay a Transfer Fee if a proposed transfer would result in a change in control of the business or its assets. This Transfer Fee is equal to fifty percent (50%) of Dermani Medspa's then-current initial franchise fee for a single unit franchise. This fee is intended to reimburse Dermani Medspa for expenses related to reviewing the transfer application, including legal and accounting costs.
Specifically, one-half (½) of the Transfer Fee must be paid when the franchisee submits the transfer request, and this portion is non-refundable. The remaining balance of the Transfer Fee is due when the transfer is completed. If the transfer does not proceed after Dermani Medspa has approved it, Dermani Medspa has the right to require the franchisee or proposed transferee to reimburse them for any out-of-pocket expenses incurred during the process, including attorney's fees.
This means that a Dermani Medspa franchisee considering a transfer needs to be prepared to pay a significant fee, potentially thousands of dollars, to Dermani Medspa for the transfer. The initial portion of this fee is non-refundable, so if the transfer falls through for any reason, that money will not be returned. It is also important to note that even if Dermani Medspa approves the transfer, the franchisee may still be responsible for reimbursing Dermani Medspa's expenses if the transfer is not completed.