Upon termination or expiration of the Dermani Medspa agreement, does Dermani Medspa have the right 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;
NOTE 10 - RIGHT OF FIRST REFUSAL
The Company has the "right of first refusal", which gives them the right to purchase and acquire a franchised business under various circumstances, as more fully described in the Franchise Disclosure Document. Management does not plan to exercise their right of first refusal.
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 the option to purchase the assets of a franchised business upon termination or expiration of the franchise agreement. However, if Dermani Medspa does not exercise an option to purchase the assets, the franchisee is obligated to alter the premises to clearly distinguish it from its former appearance and other Dermani Medspa locations. This alteration must be done at the franchisee's own expense and according to the specifications in the Dermani Medspa Manual.
This requirement ensures that the public will not confuse the terminated franchise with the Dermani Medspa brand. The franchisee must also stop using Dermani Medspa's trademarks and notify relevant entities, such as telephone companies and domain name registries, about the termination.
Additionally, the FDD states that Dermani Medspa has a "right of first refusal" to purchase and acquire a franchised business under various circumstances, although management does not currently plan to exercise this right. This means that while Dermani Medspa has the option to buy the business, they are not obligated to do so, and the franchisee needs to be prepared to re-brand the location if Dermani Medspa declines to purchase the assets.