Under what condition does Dermani Medspa reserve the right to obtain its own insurance policy?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail or refuse to obtain and maintain the insurance we specify, in addition to our other remedies, we may obtain comparable insurance for you and the Franchised Business on your behalf, in which event you shall cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a ten percent (10%) administrative fee for our time incurred in obtaining the insurance.
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 to obtain comparable insurance for the franchisee's business if the franchisee fails or refuses to obtain and maintain the insurance coverage that Dermani Medspa specifies.
In this situation, Dermani Medspa can secure insurance on behalf of the franchisee. The franchisee is then obligated to cooperate with Dermani Medspa and reimburse them for all premiums, costs, and expenses incurred in obtaining and maintaining the insurance.
Furthermore, Dermani Medspa will charge a ten percent (10%) administrative fee for their time spent obtaining the insurance. This clause ensures that Dermani Medspa can protect its brand and interests if a franchisee does not comply with the required insurance standards, but it also places the financial burden of non-compliance, along with an administrative fee, on the franchisee.