Franchise Evaluator™: dermani MEDSPA®

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

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.

We categorize the market size as a large market.

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?

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.

We categorize the Industry Trend as a high growth trend.

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?

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.

We categorize the product and service drivers as high drivers.

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

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.

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

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?

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.

We categorize the regulatory climate as mid-high regulation.

How experienced is the franchisor at being a franchisor?

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.

We categorize the Franchising Experience as Extensive.

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

We categorize the Franchising Leaders as Highly Experienced.

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

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.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

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.

We categorize the Financial Health as Sound.