Under the Dermani Medspa Franchise Agreement, is a franchisee required to operate the Franchised Business at a single, agreed-upon location?

According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are required to operate their franchised business at a single, agreed-upon location. This is a standard practice in franchising, ensuring that each outlet has a defined territory and customer base. Franchisees cannot relocate their premises without prior written consent from Dermani Medspa, and any relocation request will be evaluated based on factors similar to those used for approving new Dermani Medspa sites. A relocation fee may also be required. This requirement helps Dermani Medspa maintain brand consistency and manage market distribution effectively.

While franchisees must operate from a single, approved location, Dermani Medspa retains significant rights regarding territory and alternative distribution channels. Dermani Medspa can operate or franchise similar businesses under different names, offer products and services through other channels like the internet or retail stores, and even acquire competing businesses. These rights mean that while franchisees have a protected territory, Dermani Medspa can still engage in activities that might create competition within or near that territory.

Furthermore, franchisees are restricted from selling products or services through other means, such as delivery or the internet, without Dermani Medspa's prior written approval. This control allows Dermani Medspa to manage its brand and distribution channels effectively, but it also limits the franchisee's flexibility in adapting to changing market conditions or customer preferences. Dermani Medspa also retains the right to modify or eliminate a franchisee's territory if the franchisee defaults under the Franchise Agreement, adding another layer of risk for the franchisee.