Under what circumstances can Dermani Medspa refuse a franchisee's request for a supplier or vendor?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
e PC's approval.
- 8.3.5. You acknowledge and agree that we may establish one or more preferred vendor programs with one or more nationally or regionally known suppliers who are willing to supply all or some Franchised Businesses with some or all of the Products or services that we require for use and/or sale in the development and/or management of the Medspas. In this event, we may limit the number of approved suppliers or vendors with whom you may deal, designate sources that you must use for some or all Products or services, and/or refuse any of your requests if we believe that this action is in the best interest of the System or the network of Franchised Businesses and Medspas. We will have unlimited rights to approve or disapprove the suppliers or vendors who may be permitted to sell Products or services to you.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, Dermani Medspa may refuse a franchisee's request for a specific supplier or vendor if they believe it is in the best interest of the Dermani Medspa system or the network of franchised businesses and medspas. This gives Dermani Medspa considerable latitude in controlling the supply chain and ensuring consistency across all franchise locations.
Dermani Medspa may limit the number of approved suppliers or vendors with whom a franchisee can conduct business. They can also designate specific sources that franchisees must use for some or all products or services. This allows Dermani Medspa to maintain quality control and potentially negotiate better pricing or terms with preferred vendors due to the collective buying power of the entire franchise system.
Dermani Medspa also retains unlimited rights to approve or disapprove any suppliers or vendors who seek to sell products or services to franchisees. Furthermore, Dermani Medspa can revoke previous approvals of suppliers or vendors at their sole discretion. This enables Dermani Medspa to respond quickly to any issues with supplier performance, product quality, or compliance with brand standards. Dermani Medspa also has the right to collect and retain all Allowances offered by suppliers or vendors based upon a franchisee's purchases of Products or services. These Allowances may be based on System-wide purchases of Products or services.