Under what condition is a Dermani Medspa franchisee not required to sign a Management Agreement with a PC?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
You must sign a Management Agreement with a PC unless your dermani MEDSPA® will be in a state that permits one entity to both manage and operate the dermani MEDSPA®, including providing medical services from the dermani MEDSPA®. If you are in a state that permits you to both manage the dermani MEDSPA® and provide medical services, you must sign our Waiver of Management Agreement. More information about the Waiver of Management Agreement is provided below. In the event applicable state law permits franchisees to operate the dermani MEDSPA®, or does not require a PC, then you as the owner of the Franchised Business must satisfy and comply with all other requirements that would otherwise pertain to the PC (for example, obtaining and maintaining professional liability coverage as discussed in Item 8).
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, a franchisee is not required to sign a Management Agreement with a Professional Corporation (PC) if the Dermani Medspa location is in a state that permits a single entity to both manage and operate the medspa, including providing medical services. In this case, the franchisee must sign a Waiver of Management Agreement instead.
This waiver allows the franchisee to operate the medical aspects of the Dermani Medspa and manage the business without separating these functions into two distinct entities. The franchisee agrees to fulfill the responsibilities of both the 'PC' and the 'Company' as defined under a standard Management Agreement.
However, to qualify for this waiver, the franchisee must represent that they have consulted with an attorney experienced in medical and healthcare laws in their state, who has advised them that operating the Franchised Business as a single entity is permissible. The franchisor, Dermani Medspa, retains the final determination on whether to permit the waiver. This ensures compliance with all applicable laws and regulations, which are particularly stringent in the medical industry.
This condition is important for prospective franchisees to understand, as it affects the operational structure and legal requirements of their business. Franchisees should carefully investigate their state's regulations and consult with legal counsel to determine whether they qualify for the Waiver of Management Agreement and to ensure full compliance with all applicable laws.