Under what circumstances does Dermani Medspa's right of first refusal NOT apply to a transfer of interest?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.7.1. We have the right, exercisable within thirty (30) calendar days after receipt of the notice specified in Section 7.3, to send written notice to you that we intend to purchase the interest proposed to be transferred, if such interest is all or a controlling interest in you, any material assets of you, any direct or indirect interest in this Agreement, or any direct or indirect interest in you.
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 a right of first refusal, allowing them to purchase a franchised business when a franchisee proposes to transfer their interest. However, this right does not apply in specific situations.
Dermani Medspa's right of first refusal will not apply to a transfer under Section 7.4 of the franchise agreement. 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 includes transfers to these immediate family members as a result of death or incapacity, as described in Section 7.5 of the franchise agreement.
This means that a Dermani Medspa franchisee can transfer their franchise to these listed family members without Dermani Medspa having the option to purchase the franchise first. For a prospective franchisee, this provides some assurance that the business can be passed down to close family members without intervention from the franchisor. It is important to review Sections 7.4 and 7.5 of the franchise agreement to fully understand the conditions and limitations of these exceptions to the right of first refusal.