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A complete guide to med spa franchise agreements

Jana Dimovska
December 1, 2025
Reviewed by: Teodor Jurukovski

If you’re thinking about turning your med spa into a franchise or joining a franchise opportunity as a partner, it all starts with a solid franchise agreement. 

This document is the backbone of your franchise business relationship, outlining everything from brand standards and fees to training, marketing support, and territory rights. 

In short, it’s what keeps both parties protected and ensures everyone knows exactly what’s expected from this business plan.

A well-crafted med spa franchise agreement prevents confusion and conflict, and conveniently sets you up for long-term success.

Want to jump straight to the med spa franchise agreement template?  Grab it here!

Key parts of a medical spa franchise agreement

Before we dive in, it’s worth repeating: A med spa franchise agreement is a legally binding contract that should never be signed without professional review. 

Both the franchisor and franchisee should consult a qualified franchise or healthcare attorney before finalizing anything.

⚠️ Make sure you consult with a lawyer before signing any documents to clarify your rights, obligations, and regulatory responsibilities — and ensure the agreement aligns with healthcare industry standards.

Franchise fees and royalties

Let’s start with the part that usually catches everyone’s attention: the money. 

A med spa franchise agreement will detail your initial franchise fee — a one-time payment to operate under the brand, as well as ongoing royalties and any other recurring payments. 

Royalty fees are often calculated as a percentage of gross revenue, though some franchises charge a flat monthly amount instead.

Many franchisors also require marketing fees, which are used for shared advertising and social media campaigns or brand promotions. 

Before you sign, take time to understand what you’re actually getting in return for these fees. Are royalties based on total revenue streams before or after deductions? Do marketing fees go toward national campaigns, or can they be used locally?

Term length and renewal options

Franchise agreements don’t last forever. Most med spa franchises operate on a term of 5, 10, or 15 years, depending on the brand and investment level. 

Once that term ends, franchisees may have the option to renew, but renewal isn’t automatic. Typically, you’ll need to be in good standing, meet brand recognition standards, and pay a renewal fee.

Be sure to read the fine print. Some franchisors require renovations or equipment updates before approving a renewal, while others may renegotiate the contract entirely. It’s also smart to confirm how much control the franchisor has over renewal terms. 

For a deeper look at renewal rules and your legal protections, the FTC’s Franchise Rule Compliance Guide is an excellent reference.

Use of trademarks and branding

One of the biggest perks of joining a med spa franchise is the ability to operate under a well-established brand name, logo, and identity. 

The agreement grants you a limited license to use the franchisor’s trademarks, but that privilege comes with clear rules. Franchisees must follow strict brand guidelines that cover everything from signage and marketing materials to uniforms and clinic décor.

It’s also important to know that franchisors retain the right to update or refresh their brand identity, and you may be required to adopt those changes at your own expense. 

These trademark rights and brand controls are standard practice in franchising and are supported by international intellectual property laws designed to protect franchise owners and ensure consistent use of trademarks across all locations.

Training and support obligations

Most med spa franchise agreements outline initial training for new franchisees, which usually takes place at the franchisor’s headquarters or at a flagship location. 

The agreement should clearly state the duration of the training, who is required to attend, and what expenses (such as travel or lodging) you’ll be responsible for.

Beyond the initial program, franchisors often provide ongoing support systems, including refresher courses, new treatment rollouts, marketing strategies, and business check-ins. In return, franchisees must stay compliant with updated procedures on the med spa services.

Territory and exclusivity rights

Territory is one of the most important (and sometimes most misunderstood) parts of a franchise agreement. It defines where you’re allowed to operate your med spa, often described in terms of geographic boundaries or population size.

In most agreements, this section will specify whether your rights are exclusive or non-exclusive, which can significantly affect your level of competition and growth potential.

Exclusive vs non-exclusive territory

An exclusive territory means the franchisor cannot open another franchise (or corporate location) within your defined area. 

A non-exclusive territory, however, offers no such protection, meaning other franchisees could set up nearby. Make sure your agreement clearly outlines your territory, including any exceptions.

Quality control and operational standards

Consistency is everything in franchising, especially in the med spa industry, where client experience and safety are of utmost importance. 

Your agreement will include strict quality control and operational standards, covering everything from treatment protocols and sanitation to clinic décor and ongoing training programs.

Franchisors often conduct regular audits or surprise inspections to ensure these standards are upheld.

While it might sound intimidating, these checks protect both the brand’s reputation and your own investment. Failing to meet standards can result in warnings, penalties, or, in serious cases, termination of the agreement.

Termination and dispute resolution clauses

This clause outlines the circumstances under which either party can terminate the agreement, such as: 

  • Failure to pay fees
  • Bankruptcy
  • Non-compliance with brand standards 

It should also specify notice periods, any opportunity to fix issues (known as a “cure period”), and what steps must be taken once the contract ends.

After termination, you’ll likely be required to stop using the brand name, remove trademarks from your clinic, and settle any outstanding fees. 

The agreement should also explain how disputes are handled — whether through mediation, arbitration, or court — and under which jurisdiction’s laws.

Tips for negotiating a successful med spa franchise agreement

Once you’ve reviewed the main parts of your med spa franchise agreement, the next step is knowing how to negotiate terms that set you up for success. 

This process doesn’t have to be intimidating. It’s designed to make sure both sides are protected and expectations are crystal clear from the start.

Source: Pabau

Start by consulting with a lawyer who specializes in both franchise and healthcare law to help you navigate dense legal language, spot red flags, and ensure everything aligns with medical regulations. 

Don’t be afraid to ask questions if something doesn’t make sense, and make sure all promises or flexible terms are put in writing. These agreements are intentionally detailed, and getting clarification early can prevent misunderstandings later on. 

You’ll also want to focus your attention on the high-impact clauses, like the sections on fees, renewal, territory, and termination, as these can directly affect your profitability and freedom to grow. 

When negotiating, discuss renewal terms upfront to avoid surprises at the end of your initial agreement, and make sure you understand exactly what will be required to renew. 

Finally, compare competing franchise offers before you commit. Looking at how other brands structure their fees, support, and territory rights will give you valuable leverage — and help you choose the opportunity that offers the best balance of cost, control, and support.

Download a med spa franchise agreement template

Med Spa
Franchise Agreement

Template for download

Manage all of your med spa locations easily from a single platform

Navigating a med spa franchise agreement is just the first step toward running a successful franchise business. 

Once you’re up and running, managing multiple locations efficiently becomes critical.

That’s where Pabau comes in. Pabau is an all-in-one practice management software that helps you manage booking and scheduling, patient record management, marketing, payment processing, and more.

With Pabau’s multi-location features, you can: 

  • Oversee all your med spa franchise locations from a single dashboard
  • Customize pricing and services
  • Add all locations to your online booking
  • Schedule and manage appointments across multiple locations
  • Coordinate staff’s schedules across all locations
  • Track business performance per location

Ensure each location meets your brand’s high standards without adding extra stress.

Ready to simplify multi-location and franchise management and grow your med spa business with confidence? Book a demo today!