Under what conditions might Dermani Medspa refuse a franchisee's proposal to add a new supplier?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
We may establish strategic alliances or preferred vendor programs with suppliers that are willing to supply some products or services to some or all of the dermani MEDSPA®s in our system. If we do establish those types of alliances or programs, we may limit the number of approved suppliers with whom you may deal, we may designate sources that you must use for some or all products and services, and we may refuse to approve proposals from franchisees to add new suppliers if we believe that refusal would be in the best interests of the System or the franchised network of dermani MEDSPA®s.
If you wish to purchase, lease or use any products or services that we have not previously approved, or you wish to purchase or lease from a supplier or vendor we have not previously approved, you must submit a written request for approval or you must request the supplier to do so. You must pay our thencurrent evaluation fee for each product, service, vendor or supplier you request that we evaluate, plus the costs we incur in connection with testing, inspecting, and evaluating the proposed product, service, vendor or supplier. We must approve any product, service, vendor or supplier in writing before you make any purchases of that product or from that supplier. We can require that our representatives be permitted to inspect the supplier's facilities or vendor's work and that samples from the supplier or vendor be delivered, either to us or to an independent laboratory or entity, for testing. We reserve the right to re-inspect the facilities and products or services of any approved supplier or vendor and to revoke our approval if the supplier or vendor fails to continue to meet any of our then-current standards in our sole discretion. Our supplier or vendor approval procedure does not obligate us to approve any particular supplier or vendor. We will notify you in writing within 30 days after you have requested our approval, and you have provided all information that we might request to evaluate a supplier or vendor, whether the proposed product, service, vendor or supplier is, in fact, approved or disapproved. We are not required to make available to you or to any supplier or vendor our criteria for product, service, vendor or supplier approval. We are not obligated to approve any specific product, service, vendor or supplier if we believe that approval of that product, service, vendor or supplier is not in the best interests of the System. We may revoke our prior approval of any product, service, vendor or supplier at any time, and after your receipt of written notice from us regarding our revocation you must stop using that product or service or stop purchasing from that supplier or vendor.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–28)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa may refuse a franchisee's proposal to add a new supplier if they believe that refusal would be in the best interests of the Dermani Medspa system or the franchised network of Dermani Medspa locations. This gives Dermani Medspa broad discretion to reject a proposed supplier based on their assessment of what benefits the overall franchise.
To request approval for a new supplier, a Dermani Medspa franchisee must submit a written request, or the supplier can do so. The franchisee is responsible for paying Dermani Medspa's then-current evaluation fee, as well as any costs incurred for testing, inspecting, and evaluating the proposed product, service, vendor, or supplier. Dermani Medspa can require inspections of the supplier's facilities and submission of samples for testing, either to Dermani Medspa or an independent entity.
Dermani Medspa will notify the franchisee in writing within 30 days of the request, provided all necessary information has been submitted, whether the proposed supplier is approved or disapproved. Dermani Medspa is not obligated to disclose its criteria for supplier approval and is not required to approve a supplier if it is not in the best interests of the system. Furthermore, Dermani Medspa reserves the right to revoke prior approval of any supplier at any time, and the franchisee must cease using that supplier upon written notice of revocation. This highlights the importance of franchisees understanding Dermani Medspa's criteria and processes for supplier approval to minimize the risk of investing time and resources into a supplier that may ultimately be rejected or later disapproved.