Under what circumstances is Dermani Medspa not liable for failure to perform obligations?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
tions, including, without limitation, employment, labor, and wage and hour laws, tax laws, local operating regulations, medical, and corporate practice of medicine laws and regulations. You shall timely obtain and maintain any and all permits, certificates, or licenses necessary for the full and proper conduct of the Franchised Businesses and dermani MEDSPA®s contemplated under this Agreement.
- 11.2. Notification of Claims. You shall notify us in writing within five (5) calendar days of receipt of notice of any health or safety violation, the commencement of any action, suit, or proceeding, and of the issuance of any ord
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, Dermani Medspa is not liable for claims, obligations, or damages arising from the franchisee's business operation, management of Dermani Medspa locations, conduct under the agreement, or breach of the agreement if these issues are determined to be caused solely by Dermani Medspa's gross negligence or willful misconduct. This determination must be made by a court of competent jurisdiction and be final and unappealable.
This means that while franchisees are generally responsible for covering losses and legal costs associated with their business, there's an exception if Dermani Medspa itself is directly and demonstrably at fault due to gross negligence or intentional misconduct. However, the burden of proof rests on the franchisee to demonstrate this in court.
This clause is fairly standard in franchise agreements, as it seeks to balance the franchisor's need to control the brand and system with the franchisee's responsibility for their own business operations. Franchisees should carefully consider this indemnification clause and understand the circumstances under which they could be held liable for claims or damages.