Under what conditions will a Dermani Medspa franchisee be required to reimburse Dermani Medspa for the costs of an examination?

The 2025 Dermani Medspa FDD states that franchisees may be required to reimburse Dermani Medspa for expenses related to insurance. Specifically, if a franchisee fails to obtain and maintain the insurance coverage specified by Dermani Medspa, Dermani Medspa has the right to obtain comparable insurance on behalf of the franchisee.

In such cases, the franchisee is obligated to cooperate with Dermani Medspa and reimburse them for all premiums, costs, and expenses incurred in obtaining and maintaining the insurance. This reimbursement also includes a ten percent (10%) administrative fee charged by Dermani Medspa for their time spent securing the insurance.

This condition highlights the importance of maintaining the required insurance coverage. Failure to do so not only allows Dermani Medspa to procure insurance on the franchisee's behalf but also results in the franchisee bearing the costs of the premiums, expenses, and an additional administrative fee. This policy ensures that all Dermani Medspa locations maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities, while also providing Dermani Medspa with a mechanism to enforce compliance with insurance requirements.