Under what circumstances can a Dermani Medspa franchisee utilize generative artificial intelligence software?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not, without our prior written consent, utilize any generative artificial intelligence software, tools, or technologies, including, natural language processing, deep learning algorithms, or machine learning models ("Generative AI") directly or indirectly in the operation of the Franchised Business, including without limitation, in advertising, promotion, or marketing of the Franchised Business or the Medspa, communications with customers, business planning, analysis or optimization, or in any social media.
You acknowledge and agree not to upload or share any Confidential Information (including any
inputs of information containing trade secrets, sensitive confidential information or personal information) with any unapproved third-party platforms, including Generative AI, except as authorized in writing by us. In addition, you shall prohibit your employees from using any Confidential Information in Generative AI. In the event you utilize any Generative AI, with or without our prior approval, you shall comply with all laws applicable to such use, including without limitation, all trademark, copyright, and biometric laws, and shall not infringe upon the intellectual property of a third party, or use such intellectual property without appropriate authorization and attribution.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are generally prohibited from using generative artificial intelligence (AI) software in the operation of their franchised business. This restriction extends to various applications, including advertising, promotion, marketing, customer communications, business planning, analysis, optimization, and social media activities.
However, the FDD indicates that a Dermani Medspa franchisee may be able to use generative AI with the franchisor's prior written consent. If a franchisee uses generative AI, whether with or without prior approval, they must comply with all applicable laws, including trademark, copyright, and biometric laws. They must also avoid infringing upon the intellectual property rights of third parties and secure appropriate authorization and attribution when using such property.
Furthermore, franchisees are prohibited from uploading or sharing confidential information, including trade secrets, sensitive confidential information, or personal information, with unapproved third-party platforms, including generative AI, unless authorized in writing by Dermani Medspa. Franchisees must also ensure that their employees do not use any confidential information in generative AI. This highlights the importance of data security and compliance with intellectual property laws when considering the use of AI in the business.