Under the revenue-based fee option, how is the Administrative Fee calculated for a Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
For all Administrative Services rendered by Manager pursuant to this Agreement, Practice shall pay Manager an administrative fee that shall be equal to the revenues received by Practice for the Professional Services less any expenses of Practice (the "Administrative Fee").
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Administrative Fee under the revenue-based option is calculated as the revenues received by the Practice for Professional Services, less any expenses of the Practice. This fee is paid by the Practice to the Manager for administrative services.
The FDD notes that the revenue-based fee may not be permitted in all states due to fee-splitting laws. For example, Florida and North Carolina prohibit percentage-based management fees. Other states, like Tennessee and Georgia, may allow this structure only in limited situations.
A prospective Dermani Medspa franchisee must evaluate state law to determine whether a revenue-based management fee is permitted and assume full responsibility for compliance with all applicable laws and regulations. If the revenue-based fee is prohibited, the franchisee must implement a flat fee structure instead.