Under what conditions does the Maryland Addendum apply to the Dermani Medspa Franchise Disclosure Document?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
se seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Based upon the Franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the Franchisor completes its pre-opening obligations under the franchise agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens.
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- Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement.
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- Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect.
This Addendum is being entered into in connection with the Franchise Agreement. In the event of any conflict between this Addendum and the Franchise Agreement, the terms and conditions of this Addendum shall apply.
[Signature page to follow.]
dermani MEDSPA® Franchising LLC Its: Its:
MARYLAND ADDENDUM TO AREA DEVELOPMENT AGREEMENT
To the extent the Maryland Franchise Registration and Disclosure Law, Md. Code Bus. Reg. §§14- 201 – 14-233 applies, the terms of this Addendum apply.
- Notwithstanding anything to the contrary contained in the Area Development Agreement, to the extent that the Area Development Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, the Maryland Addendum applies to the franchise agreement or area development agreement to the extent that the Maryland Franchise Registration and Disclosure Law, Md. Code Bus. Reg. §§14-201 – 14-233, applies. This means that if the laws and regulations outlined in the Maryland Franchise Registration and Disclosure Law are relevant to the franchise agreement, the terms of the addendum will also apply.
The addendum modifies any provisions within the franchise agreement or area development agreement that are inconsistent with specific stipulations. These stipulations include ensuring that no representations require franchisees to waive liability under the Maryland Franchise Registration and Disclosure Law, allowing franchisees to bring lawsuits in Maryland for claims arising under this law, and maintaining a three-year statute of limitations for such claims.
Furthermore, based on Dermani Medspa's financial condition, the Maryland Securities Commissioner requires a financial assurance. As a result, all initial fees and payments owed by franchisees are deferred until Dermani Medspa completes its pre-opening obligations under the franchise agreement. Similarly, development fees and initial payments by area developers are deferred until the first franchise under the development agreement opens.