Under what condition will Dermani Medspa charge a Non-compliance Fee?

According to Dermani Medspa's 2025 Franchise Disclosure Document, if a franchisee fails or refuses to obtain and maintain the insurance coverage specified by Dermani Medspa, the company has the right to obtain comparable insurance on behalf of the franchisee. In this event, the franchisee is required to cooperate with Dermani Medspa and reimburse them for all premiums, costs, and expenses incurred in obtaining and maintaining the insurance.

In addition to the reimbursement of insurance-related costs, Dermani Medspa will charge a ten percent (10%) administrative fee for their time spent obtaining the insurance. This fee is calculated based on the total premiums, costs, and expenses incurred by Dermani Medspa.

This policy ensures that all Dermani Medspa locations maintain the necessary insurance coverage to protect the brand and its franchisees from potential liabilities. By reserving the right to obtain insurance on behalf of a non-compliant franchisee, Dermani Medspa mitigates the risk of uninsured incidents that could negatively impact the entire franchise system. The 10% administrative fee serves to compensate Dermani Medspa for the additional effort and resources required to enforce insurance compliance.