Under what circumstances is Dermani Medspa's approval required for relocating the Franchised Business and Medspa outside of the Territory?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
as we may otherwise approve, you agree to open the Medspa by the Opening Date. If you are unable to open the Medspa by the Opening Date, we may terminate this Agreement or we may provide you with an extension of this timeframe.
2.6. Relocation of the Franchised Business.
2.6.1. If you are unable to continue the operation of the Franchised Business at the Premises because of the occurrence of a force majeure event (including acts of God, strikes, lockouts or other industrial disturbances, war, riot, epidemic, acts of terrorism, fire or other catastrophe or other forces beyond your control; provided, however, that force majeure shall not include your lack of financing), then you may request our approval to relocate the Franchised Business and Medspa to another location in the Territory, which approval shall not be unreasonably withheld. Any other relocation outside the Territory or a relocation of the Franchised Business and Medspa not caused by force majeure shall also be subject to our prior approval, which we may provide in our sole discretion. If we elect to grant you the right to relocate the Franchised Business and Medspa, then you shall comply with
the site selection and construc
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa requires prior approval for relocation of the Franchised Business. If a force majeure event occurs, preventing operation at the current premises, Dermani Medspa's approval is needed to relocate within the territory, but such approval will not be unreasonably withheld. However, any relocation outside the assigned territory, or a relocation not due to a force majeure event, requires Dermani Medspa's prior approval, which Dermani Medspa may provide at its sole discretion.
If Dermani Medspa approves a relocation, the franchisee must adhere to the site selection and construction procedures outlined in Section 2 of the franchise agreement. Additionally, upon approval, the franchisee is required to pay a relocation fee. This fee is the lesser of $5,000 or the actual costs and expenses Dermani Medspa incurs during the relocation process.
This means that franchisees have limited flexibility in choosing a new location. Even in cases of unforeseen circumstances, the franchisee must seek approval from Dermani Medspa to relocate within their territory. Relocating outside the territory is even more restrictive, as Dermani Medspa has the right to deny such requests at its discretion. Franchisees should carefully consider these restrictions and the potential costs associated with relocation before signing the franchise agreement.