Under what circumstances does Dermani Medspa's right of first refusal NOT apply to a transfer?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
We may assign our right of first refusal to someone else either before or after we exercise it; however, our right of first refusal will not apply with regard to a Transfer under Section 7.4 or a transfer to your parents, spouse, son, daughter, or mother or father in-law as a result of death or incapacity as described in Section 7.5.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa has the right of first refusal, allowing them to purchase a franchised business when a franchisee proposes a transfer of their interest. However, this right does not apply under specific circumstances.
Dermani Medspa's right of first refusal will not apply to a transfer under Section 7.4, which is not defined in the provided excerpts. Additionally, the right of first refusal does not apply to transfers to the franchisee's parents, spouse, son, daughter, or mother or father-in-law. This exception extends to transfers to these individuals as a result of death or incapacity, as described in Section 7.5, which is also not defined in the provided excerpts.
As a prospective franchisee, it's important to understand the details of Sections 7.4 and 7.5 to fully grasp the conditions under which Dermani Medspa waives its right of first refusal. This information is crucial for future planning, especially concerning potential transfers of the franchise.