Under what conditions can Dermani Medspa increase the required insurance coverage amounts for franchisees?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances.
We, dermani MEDSPA® Franchising LLC and our parent company LazCoz LLC, must be named as an additional insured on a primary and non-contributory basis on the following policies: commercial general liability insurance, automobile liability insurance, Professional liability, and umbrella liability insurance.
The insurance policies must provide for thirty (30) days' prior written notice to us of a policy's material modification, cancellation or expiration.
You must routinely furnish us copies of your certificates of insurance or other evidence of your maintaining this insurance coverage and payment of premiums, including without limitation, completed policy endorsements.
If you fail or refuse to obtain and maintain the insurance we specify, in addition to our other remedies, we may obtain comparable insurance for you and the Franchised Business on your behalf, in which event you shall cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a ten percent (10%) administrative fee for our time incurred in obtaining the insurance.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa can periodically increase the amounts of required insurance coverage or require different or additional insurance coverage under certain conditions. These conditions include reflecting inflation, identifying new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.
This means that as a Dermani Medspa franchisee, you may be required to increase your insurance coverage during the term of your Franchise Agreement. These increases are not arbitrary but are tied to specific factors that could impact the business's risk profile and liability exposure. It is important to note that Dermani Medspa, dermani MEDSPA® Franchising LLC and its parent company LazCoz LLC, must be named as an additional insured on a primary and non-contributory basis on the commercial general liability insurance, automobile liability insurance, Professional liability, and umbrella liability insurance.
The insurance policies must provide for thirty (30) days' prior written notice to Dermani Medspa of a policy's material modification, cancellation, or expiration. Franchisees must routinely furnish Dermani Medspa with copies of their certificates of insurance or other evidence of maintaining the required insurance coverage and payment of premiums, including completed policy endorsements. If a franchisee fails to maintain the specified insurance, Dermani Medspa has the right to obtain comparable insurance on the franchisee's behalf, and the franchisee will be responsible for reimbursing all premiums, costs, and expenses incurred by Dermani Medspa, plus a ten percent (10%) administrative fee.