Under what conditions can Dermani Medspa increase the required amounts of insurance coverage?

According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa can periodically increase the required amounts of insurance coverage or require different or additional insurance coverage under certain conditions. These conditions include reflecting inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. This allows Dermani Medspa to adjust insurance requirements to keep pace with economic changes, legal developments, and potential increases in liability exposure.

For a prospective Dermani Medspa franchisee, this means that the initial insurance coverage amounts specified in the franchise agreement are not necessarily fixed for the duration of the agreement. The franchisee needs to be prepared for potential increases in insurance costs due to these factors. It is important to factor in potential future increases in insurance costs when evaluating the financial feasibility of the franchise.

The franchisee is responsible for maintaining the required insurance coverage and must name dermani MEDSPA® Franchising LLC and its parent company, LazCoz LLC, as additional insured on specific policies. Failure to maintain the specified insurance can result in Dermani Medspa obtaining comparable insurance on behalf of the franchisee, with the franchisee responsible for reimbursing all premiums, costs, and expenses, plus a 10% administrative fee. This underscores the importance of adhering to the franchisor's insurance requirements to avoid additional financial burdens and potential breaches of the franchise agreement.