Under what conditions will the Trademark Agreement for Dermani Medspa automatically renew, and for what duration?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company executed a Trademark and System License Agreement (the Trademark Agreement) on April 22, 2019 with Lazcoz, LLC (the Licensor). The Licensor is the owner of a format and system (the System) relating to the establishment, operation, management, and franchising of medical spa centers, which operate under the "dermani MEDSPA®" name and the System. The Company has the right to sublicense the properties to third-party franchisees for the operation of dermani MEDSPA® pursuant to the execution of an approved Franchise Agreement. The Trademark Agreement commenced on the effective date of the Trademark Agreement and shall remain in effect for twenty (20) years (April 22, 2039) and shall renew automatically for successive one (1) year periods unless terminated in accordance with the Trademark Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Trademark Agreement executed on April 22, 2019, with Lazcoz, LLC, will remain in effect for an initial term of twenty years, specifically until April 22, 2039. This agreement allows Dermani Medspa to sublicense its properties to franchisees.
The Trademark Agreement will automatically renew for successive one-year periods. However, this automatic renewal is not indefinite, as it is contingent upon the agreement not being terminated beforehand, according to the terms outlined within the Trademark Agreement itself.
For a prospective Dermani Medspa franchisee, this indicates that the rights to use the Dermani Medspa trademarks and system are secured through this agreement, initially for a substantial term, with the possibility of annual extensions. However, franchisees should carefully review the Trademark Agreement to understand the conditions under which it could be terminated, as this would impact their ability to operate under the Dermani Medspa brand.