Bottom line
- Total investment $436K – $861K including a $55K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $831K/year.
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one dermani MEDSPA® unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 dermani MEDSPA® units return on equity?
Equity IRR · 5-yr
34.6%
4.42× MOIC
Year-1 DSCR
2.35×
EBITDA ÷ debt service
Equity required
$5.3M
on $14.7M purchase
Total debt
$9.4M
SBA $5.0M + senior + seller note
Overview
About
dermani MEDSPA franchisees operate aesthetic medical spas offering non-invasive treatments (injectables, laser therapy, body contouring, skincare). Daily operations include client consultations, procedure administration by licensed practitioners, treatment booking/scheduling, inventory management, and compliance with medical/aesthetic regulations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
dermani MEDSPA presents moderate-to-caution risk: aggressive growth trajectory in small system lacks profitability transparency, creating uncertainty around ROI claims relative to substantial capital requirements.
Score breakdown · what drove the 39 / 100 rating
- 01MEDNet Income not disclosed in FDD Item 19 — unable to verify actual profitability claims against $830K average revenue
- 02MINORHigh initial investment range ($435K-$860K) with 5% royalty creates significant break-even threshold requiring ~$1.1M+ annual revenue at high end
- 03MINORRapid unit growth of 69.2% YoY suggests either aggressive recruitment or potential instability in newer franchise cohort — sustainability unclear
- 04MED27-unit system remains very small; limited sample size for franchisee success data and higher vulnerability to single-location failures
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
30 numbers
One-time purchase · CSV download · Validation questions included
FDD download
dermani MEDSPA® · FDD (2025) PDF