When transferring a Dermani Medspa franchise, what portion of the Transfer Fee is non-refundable and when is it due?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, if a franchisee proposes to transfer their franchise, they must pay a transfer fee. The transfer fee is equal to 50% of the 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 their request to Dermani Medspa for consideration of the proposed transfer. This portion of the transfer fee is non-refundable. The remaining balance of the Transfer Fee is due at the time the transfer is completed or closes.
Therefore, a Dermani Medspa franchisee should be aware that a significant portion of the transfer fee is non-refundable and must be paid upfront when requesting approval for the transfer. If the transfer is not completed after Dermani Medspa has approved it, the franchisee or proposed transferee may be required to reimburse Dermani Medspa for any out-of-pocket expenses incurred, including attorney's fees.