Under what condition might Dermani Medspa waive the requirement for a management agreement?

According to the 2025 Dermani Medspa FDD, Dermani Medspa may waive the requirement for a franchisee to enter into a management agreement with a PC (Professional Corporation) if applicable state law does not require such an agreement. This determination must be made by the franchisee and their legal counsel. If the franchisee qualifies for a waiver, Dermani Medspa retains the final decision on whether to permit the waiver, requiring the franchisee to execute a waiver of management agreement.

This waiver allows the franchisee to directly own and operate the Medspa, assuming all obligations, rights, and responsibilities typically held by the PC as outlined in the Franchise Agreement. The franchisee will act as the manager of the business and Medspa, and cannot hire an independent management company. They must also obtain patient consent to disclose information to Dermani Medspa as required by law and the Franchise Agreement.

It is the franchisee's responsibility to ensure that the Medspa's corporate and ownership structure complies with all local, state, and federal laws. By waiving the management agreement, Dermani Medspa consents to the franchisee's direct ownership and operation of the Medspa, acknowledging it as the Franchised Business. However, the franchisee must indemnify Dermani Medspa against any losses or claims related to the agreement or the operation of the Medspa.

For prospective franchisees, this waiver presents an opportunity to simplify the business structure and potentially reduce operational costs by eliminating the need for a separate management agreement with a PC. However, it also places greater responsibility on the franchisee to ensure compliance with all applicable laws and regulations, and to manage the Medspa effectively. Franchisees should carefully consider the legal and operational implications of this waiver before making a decision.