Upon termination or expiration of the Dermani Medspa agreement, does Dermani Medspa have the obligation to purchase the franchisee's assets?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2.4. if we do not have or do not exercise an option to purchase the assets of the Franchised Business, you agree promptly and at your own expense to make the alterations we specify in our Manual (or otherwise) to distinguish the Franchised Business and the Premises clearly from its former appearance and from other Franchised Businesses and Medspas in order to prevent public confusion;
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, Dermani Medspa does not always have an obligation to purchase the assets of a franchised business upon termination or expiration of the franchise agreement. However, Dermani Medspa may have an option to purchase the assets.
Specifically, the FDD states that if Dermani Medspa does not have or does not exercise an option to purchase the assets of the Franchised Business, the franchisee is responsible for altering the premises to distinguish it from its former appearance and other Dermani Medspa locations. This alteration must be done at the franchisee's own expense.
This clause protects Dermani Medspa from potential liabilities or claims related to the terminated franchise and ensures that the brand's image remains consistent. It also clarifies the franchisee's responsibilities for transitioning the business location after the agreement ends, especially if Dermani Medspa chooses not to buy the business assets. A prospective franchisee should clarify with Dermani Medspa the conditions under which the franchisor would exercise its option to purchase the assets.