Under what conditions will Dermani Medspa approve a transfer of a franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
A. Franchise Agreement
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| to you and without restriction. | ||
| k. “Transfer” by you – defined | Section 12.2 | Includes any sale, assignment, gift, conveyance, pledge, mortgage or other encumbrance or disposition of any interest in the Franchise Agreement, the Franchised Business or you (if you are not a natural person). |
| l. Our approval of transfer by you | Section 12.3 | You may not transfer the Franchise Agreement without our prior written consent. We will not unreasonably withhold our consent. Our consent to a transfer is not a waiver of any claims we have against you. |
| m. Conditions for our approval of transfer | Section 12.3 | Your full compliance with the Franchise Agreement; our approval of transferee; you are current in fees owed to us; transferee signs then-current franchise agreement; payment of transfer fee; release signed; you comply with non-competition covenants; all obligations to us satisfied; and others. |
| n. Our right of first | Section 12.6 | We have the right of first refusal if you determine to sell |
| refusal to acquire your | or transfer your interest in the franchisee, the Franchise | |
| business | Agreement or the Franchised Business. | |
| o. Our option to purchase your business | Section 15.5 | Upon termination or expiration of the Franchise Agreement, we have the right to purchase all or a portion of the assets of your Franchised Business at their fair market value. |
| p. Your death or disability | Section 12.5 | Your estate must transfer your interest in the Franchised Business to a third party we approve within 12 months after death or disability. Your estate must appoint a manager within 30 days of death or disability and an Operating Principal within 90 days after death or disability |
| q. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–58)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, transferring a franchise requires prior written consent from Dermani Medspa, and this consent will not be unreasonably withheld. Several conditions must be met to gain approval for a transfer. These conditions apply to both the Franchise Agreement and the Area Development Agreement.
For the Franchise Agreement, Dermani Medspa requires full compliance with the existing agreement, approval of the proposed transferee, and that all fees owed to Dermani Medspa are current. Additionally, the transferee must sign the then-current franchise agreement, pay a transfer fee, and sign a release. The franchisee must also comply with all non-competition covenants and satisfy all obligations to Dermani Medspa.
For the Area Development Agreement, Dermani Medspa requires a release, the signature of a new Area Development Agreement, payment of a transfer fee, and the transfer of all franchise agreements to the same transferee. Dermani Medspa also retains the right of first refusal to acquire the business if the franchisee decides to sell or transfer their interest. If the franchisee or one of their owners plans to sell or transfer any material asset of the business or any material part that changes control of the entity that owns the business to a third party, they must first offer the assets or interest to Dermani Medspa under the same terms and conditions.