Under what conditions can a Dermani Medspa franchisee change the Operating Principal?

According to Dermani Medspa's 2025 Franchise Disclosure Document, a franchisee cannot change the Operating Principal without prior written consent from Dermani Medspa. The Operating Principal is the person Dermani Medspa will communicate with regarding major policy, financial, management, and operational matters, and is the only person from the franchisee's Entity that Dermani Medspa recognizes as having the authority to communicate on behalf of the franchisee's Entity. The Operating Principal is initially identified in Exhibit C of the Franchise Agreement.

Dermani Medspa states that it will not unreasonably withhold consent to a change in Operating Principal if the proposed new Operating Principal meets Dermani Medspa's then-current qualifications and standards. Additionally, the proposed new Operating Principal must successfully complete Dermani Medspa's then-current training programs, as Dermani Medspa may require.

This requirement ensures that Dermani Medspa maintains a consistent point of contact who is qualified and trained to manage the franchise according to their standards. For a prospective franchisee, this means that any change in the Operating Principal will require approval from Dermani Medspa, and the proposed replacement must meet specific criteria and training requirements. This is a fairly standard practice in franchising, as franchisors want to ensure that franchisees are properly managing the business.