Under what conditions might Dermani Medspa waive certain requirements of the Franchise Agreement related to separating medical and management aspects?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
In certain states, it may be permissible under the existing laws that may be applicable to medical practices and/or medical centers for one entity to both manage and operate the dermani MEDSPA®, including hiring any medical and professional personnel and providing medical services to clients at the dermani MEDSPA®. If you determine that the laws that would apply to a dermani MEDSPA® in your state would permit you to do so, you may request that we waive certain requirements of the Franchise Agreement related to separating the operation of the medical aspects of the dermani MEDSPA® from the management aspects. In particular, depending upon the applicable laws and circumstances, you may not be required to enter into a management agreement with a PC, or be restricted from directly employing Affiliated Physicians. Any waiver or any modification of our standards would be subject to compliance with all applicable laws and regulations. If we agree to a waiver, you must enter into our "Waiver of Management Agreement" (which is Exhibit L to this Disclosure Document). Under the Waiver of Management Agreement, you agree that, instead of entering into the Management Agreement with a separate PC, you will (a) operate the dermani MEDSPA®, including performing all responsibilities and obligations of the "PC" under the Management Agreement, and (b) manage the dermani MEDSPA® as required in the Franchise Agreement and by performing all the responsibilities and obligations of the "Company" under the Management Agreement. As part of this Waiver of Management Agreement, you must represent that you have consulted with an attorney with experience in medical and health care laws and regulations in your state, and she or he has advised you that you may operate the Franchised Business
and the dermani MEDSPA® as one entity. If you qualify to enter into the Waiver of Management Agreement, we will make the final determination whether we will permit the waiver or not.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, in some states, the laws applicable to medical practices or medical centers may allow a single entity to manage and operate a Dermani Medspa. This includes hiring medical personnel and providing medical services. If a franchisee determines that the laws in their state permit this, they can request Dermani Medspa to waive certain requirements in the Franchise Agreement that mandate separating the medical operations from the management operations.
Specifically, the franchisee might not be required to enter into a management agreement with a PC (Professional Corporation) or be restricted from directly employing Affiliated Physicians. However, any waiver or modification of Dermani Medspa's standards is contingent upon compliance with all applicable laws and regulations. If Dermani Medspa agrees to the waiver, the franchisee must enter into a "Waiver of Management Agreement."
Under this Waiver of Management Agreement, instead of contracting with a separate PC, the franchisee agrees to operate the Dermani Medspa, fulfilling all responsibilities of the PC under the standard Management Agreement, and manage the medspa as required by the Franchise Agreement, performing all obligations of the "Company" as defined in the Management Agreement. As part of this waiver, the franchisee must confirm they have consulted with an attorney experienced in medical and healthcare laws in their state and have been advised that operating the franchised business and the Dermani Medspa as one entity is permissible. Ultimately, Dermani Medspa retains the final decision on whether to grant the waiver.