Multi-Unit Franchise Experts

Franchise Evaluator™: dermani MEDSPA®

dermani MEDSPA® is a professional medical spa franchise concept that provides clients a range of sought-after services, including laser hair removal, skin rejuvenation, microneedling, and other aesthetic services. dermani MEDSPA®’s membership model provides affordable beauty to a wide variety of clientele in a way that encourages collaborative relationships with the medical community, and that is designed to meet a franchisees’ professional and business goals. The ideal candidate will have business and management experience. A medical degree is not required as most franchises are set up with a management agreement with a local physician. dermani MEDSPA® has many avenues to help foster this relationship in the community.

dermani MEDSPA®
Franchise at a Glance

Corporate Address

dermani MEDSPA®
9100 Conroy Windermere Rd.
Suite 200
Windermere, FL 34786

Year Founded: 2013
Year Started Franchising: 2019
Business Model Characteristics:
  • Multi-units
  • Limited staffing needs
  • Limited time commitment
  • Strong cash on cash return on investment
  • Compelling return on time commitment
  • Modest investment level
Business Description:

dermani MEDSPA® is an award winning aesthetics franchise that is a top 25 provider for leading facial products and treatments and is the  No. 1 medical spa in the US for the IMAGE Skincare® line,  microneedling services, and holds Black Diamond status with HydraFacial©. dermani MEDSPA® prides itself on offering in demand, leading edge personal medspa services and creating a model that interested, qualified franchisees can follow.

MARKET Factors

1

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

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Market Size

dermani MEDSPA® is uniquely positioned in the rapidly growing medspa industry, offering a wide range of highly sought-after personal skin care and rejuvenation services focused on the top three revenue generators in the industry: Cosmetic injectables, Aesthetician services, and Laser Hair Removal. The medical spa services industry accounted for USD 53.2 Billion in 2021 and is projected to achieve a market size of USD 153.5 Billion by 2030, rising at a CAGR of 12.9% from 2022 to 2030.

9

We categorize the market size as a large market.

Scale

Small to Large Market Size
2

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

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Industry Trend

Innovative treatments are a key trend gaining popularity in the medical spa market. As more and more people seek out medically supervised, state-of-the-art spa services and treatments as an alternative to or in combination with other personal services to refresh, rejuvenate, and restore, the upward trend in the industry is almost assured. The industry growth is led by the development and refinement of new techniques and cutting-edge products that many claim achieve remarkable results.

10

We categorize the Industry Trend as high growth trend.

Scale

Low to High Growth Trend
3

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

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Product and Service Drivers

dermani MEDSPA® offers a variety of services provided with best-in-class, FDA-cleared equipment, and top-quality products focused on the top three revenue generators in the industry: cosmetic injectables, aesthetician services, and laser hair removal. Utilizing state-of-the-art product technology, dermani MEDSPA® carries a complete line of skincare products and services from leading reputable reputable brands, and offers a variety of services such as laser hair removal, IPL photofacials, chemical peels, dermaplaning, medical grade facials, and microdermabrasion.

10

We categorize the product and service drivers as mid to high drivers.

Scale

Low to High Drivers
4

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

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Competitive Climate

The demand for new, easier-to-access and more affordable medical spa services has demand outstripping supply in a lot of areas. dermani MEDSPA is uniquely positioned at the intersection of affordability and quality treatments, which separates them from much of the competition in the medspa space. Competition can come from largely unorganized businesses, including independent spa locations, medical professionals, and a variety of personal service businesses that want to add skin treatments to their menus.

9

We categorize the competitive climate as low-mid competitive pressure.

Scale

Low to High Competition
5

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

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Regulatory Climate

Because dermani MEDSPA® is a professional medical spa concept, some of the services provided at dermani MEDSPA® will be required to be administered by a licensed professional, and each location operates under the direction of a medical doctor. Other services would be administered and performed by licensed professionals such as aestheticians, nurses,  physician’s assistants, nurse practitioners, and others.

Aside from the licensing requirements of medical professionals, dermani MEDSPA® may also be required to meet local and state regulations in order to operate this type of business.

7

We categorize the regulatory climate as mid - high regulation.

Scale

Low to High Regulation

MODEL Factors

1

This is one of the most important factors of all. To understand it you have to look beyond what the business physically does, the services performed or products sold and ask how does the franchise make money? Where does the revenue come from? How is it generated? Are financial performance representations made? Coupled with External Factors 1, 2 and 5 – Market Size, Industry Trend and Competitive Climate and the next Internal Factor 2, Franchisee Role – the true nature of the franchise starts to take shape.

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Revenue Model

Along with a wide array of one-time services, dermani MEDSPA® offers 3 memberships for their customers to achieve their skin goals which deliver potential opportunities for recurring revenue and repeat customers. Membership 1: Skin Rejuvenation, Membership 2: aesthetic skin treatment, Membership 3: Laser Hair Removal. In-demand products and services combined with a membership model that makes high-end services attainable for many positions dermani MEDSPA uniquely to capture a large segment of the growing market.

9

We categorize the Operational Model as Simple.

Scale

Simple to Complex Model
2

How developed are the systems on which you will rely to operate your business?

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Operational Systems

With diverse backgrounds and decades of experience in healthcare, esthetics, scientific research, wellness coaching, and more, the founders of dermani MEDSPA® have developed a best-in-class medspa operation that puts the customer’s health, safety, and desired results at the center of the business. Bringing together the best-licensed technicians to provide state-of-the-art services is the key to dermani MEDSPA’s operational efficiency.

10

We categorize the Operational Systems as Comprehensive.

Scale

Basic to Comprehensive
3

In this highly diffuse world, creating, managing and projecting a Brand is essential for the health and vitality of a franchise system. How well does the Franchisor manage this? How well positioned is the brand among competitors? Is it differentiated enough? How well would potential customers recognize the brand? How is it projected into new markets? What is your role and obligations in this process? How is the Brand’s digital footprint managed?

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Brand Management

dermani MEDSPA® manages its brand with quality services and a simple, proven business model. In addition to quality service, dermani MEDSPA® allows franchisees to take full advantage of brand development, marketing materials, and marketing support to build awareness in any market.

With 5 corporate units open and 15 franchised locations open with 15 in development, it is likely any new prospective franchisee will be building the brand in any market they are going to be opening and operating in. With the marketing materials and support from dermani MEDSPA® and proven marketing and business-building strategies, franchisees will have the marketing playbook to hit the ground running.

9

We categorize the Brand Management as High Engagement.

Scale

Low to High Engagement
4

What role is the franchisee expected to play in starting, ramping and the ongoing operation of the business?

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dermani MEDSPA® Franchisee Role

The franchisee’s role in running a dermani MEDSPA® depends largely on the level of involvement in the day-to-day operations of the business. As a semi-absentee owner, the ability to hire a great general manager to run the day-to-day operations becomes critical. The ideal candidate has to possess great communication, networking, hiring, training, and relationship-building skills with a customer service focus. The ability to scale the business as an owner-operator or semi-absentee owner is critical and does not change in either scenario.

In either case, franchisees play a crucial role in the management and oversight of the business and oftentimes hire a General Manager or Business Development Manager, who can expect to spend their time on a variety of tasks, including business development, networking, local marketing, and team management.

9

We categorize the Franchisee Role as Business Manager.

Scale

Service Executor to Business Manager Role
5

What type of location, if any, is needed to deliver the product or service? If real estate is needed, are the requirements flexible or stringent? Is real estate essential to the product or brand experience or required for services to be performed onsite?

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Real Estate Needs

The real estate requirements for a dermani MEDSPA® typically range between 1,500 – 2,000 Sq. Ft. located in upscale strip centers or standalone locations surrounded by other retail businesses with plenty of visibility and parking availability. Interiors are made to feel welcoming, relaxed, and comfortable for customers and need to be aligned with the brand requirements to reflect the upscale medical spa atmosphere.

The requirements to build and operate a clean, safe environment for staff and customers in paramount, so the real estate needs of a medspa naturally will be different than the needs of other franchised businesses.

8

We categorize the real estate needs as essential need.

Scale

Basic to Essential Needs

ORGANIZATION Factors

1

How experienced is the franchisor at being a franchisor?

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Franchising Experience

dermani MEDSPA’s mission is “to provide their franchisees with a sustainable recurring revenue business in an industry they can be passionate about.”

By bringing affordable beauty to neighborhoods and encouraging collaborative relationships within the medical community, franchisees can leverage a growth-focused business model designed to provide best-in-class products and services.

Newer to franchising, but not to the medspa industry, dermani MEDSPA® leadership team has all the skills to leverage success at corporate locations to create an inclusive, attractive franchising opportunity for interested franchisees.

9

We categorize the Franchising Experience as Extensive.

Scale

Limited to Extensive
2

What is the tenure, background, and commitment of the franchise’s leadership?

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Franchise Leadership

Harvey Hillyer, Founder is a Doctor of Physical Therapy, founder of BenchMark Physical Therapy (currently one of the largest physical therapy companies in the nation with hundreds of locations), and Guardian HomeCare. His expertise with dermani MEDSPA® is focused on research and development of both locations and services. Harvey helps guide strategy through the dermani MEDSPA® leadership team leveraging past experience in scaling companies across the United States.

Stephanie Adams, Senior Operations Manager, brings over 15 years of administrative support and project management experience from multiple background areas. Joining the dermani MEDSPA® team in 2018, she is an integral part of daily operations with corporate office, franchisee onboarding, and ongoing owner support. She leads a team of franchise business coaches who help with onboarding and ongoing support.

With the guidance and franchise leadership from Kurt Landwehr, Brand Leader, and Jen Olson, VP of Franchise Development from the team at BrandOne, dermani MEDSPA® has deep industry and franchising experience.

9

We categorize the Franchising Leaders as Highly Experienced.

Scale

Limited to Highly Experienced
3

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

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Franchisee Engagement

dermani MEDSPA® provides comprehensive onboarding and ongoing training for franchise owners, covering all essential business functions, including effective sales strategies, hiring, training, and support. dermani MEDSPA® emphasizes the importance of proactive efforts by franchise owners and their teams to provide excellent service delivery and customer service. The support extends to providing sales training along with top-tier training for approaching various sales channels.

Additionally, corporate training programs equip franchisees with the skills to hire and manage their teams efficiently and effectively utilize their technology systems in daily operations. Franchise owners have the ongoing benefit of sending their teams for training whenever needed.

9

We categorize the Franchisee Engagement as Highly Engaged.

Scale

Low to Highly Engaged
4

In what kind of financial shape is the franchisor?

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Financial Health*

As with any investment opportunity, you should always consult with your financial and legal representative before making any decisions. dermani MEDSPA® makes an earnings claim (Item 19) as outlined in their current Franchise Disclosure Document (FDD). You should review this carefully.

With high-margin, highly sought-after personal care products and services that are in demand from a customer perspective, dermani MEDSPA® seems to have a competitive advantage that sets it apart from other competitors in the medspa industry.

*Always consult your financial and legal counsel before making any investment decisions. The information presented here does not constitute endorsement or validation for information purposes only.

9

We categorize the Financial Health as Sound.

Scale

Weak to Sound Financial Health

Key Points

Investment Range
$326,833-$668,526
Initial Franchise Fee
Single = $49,500
Average Gross Revenue:
Corporate Locations

$1,861,510

Average Net Income: $204,926
*See Item 19 for more information regarding the financial performance of corporate and franchise locations.
Average Number of Employees
5 -7
Corporate Units
5
Franchised Units

15

In Development

15

Royalty Fee
5%
Home Based
No
SBA Registry
Yes
Visa Candidates
No

Total Franchise Evaluator Score

126
0 – 24

Missing fundamental, internal or external factors

25 – 49

More investigation is needed

50 – 74

Worth exploring further with caution

75 – 99

Add to consideration set

100 – 140

Sound opportunity and likely a great fit

Learn more about dermani MEDSPA®

Meet with one of our experts for guidance and to answer any questions you have regarding dermani MEDSPA®.