Dermacare Medspas Lawsuit: Franchise Reaction

authority.jpgSince Dermacare (it's  CEO Carl Mudd) has decided to sue the Dermacare Franchisees who have commented or communicated on Medical Spa MD, there have been a number of comments asking about what the status is.

There have been a number of comments describing this lawsuit and the demand to find out who everyone is as an act of complete desperation. I myself can not see it as being in any way positive for Dermacare. I'm assuming that most if not all of the individuals that Carl Mudd is looking to identify are working for Dermacare or a Dermacare Franchise. I can't see that Dermacare suing all of it's franchises is something that it could possibly recover from since, if the commenters are correct, Dermacare hasn't sold a new franchise in more than a year. (Dermacare's UFOC will have to reflect any clinic closings and it's financials.) If there are any happy franchiesses they're more than welcome to comment as well.

It seems likely that this is the beginning of the end for Dermacare.

Take a very best case for Carl Mudd: He sues the Dermacare franchises and wins some sort of settlement or they settle. How will he possibly sell another franchise ever. He can't. Who would want to take the same chance.

Of course I'm just thinking out loud. It seems that Mr. Mudd is caught on the horns of a dilemma. Dermacare can suffer the death of 10,000 cuts, with franchisees speaking out and warning away potential new sales, or... Mr. Mudd's best be personally (since he eveidently owns 100% of Dermacare) is to sue the current franchisees and see what he can get before walking away.

If Mr. Mudd has chosen to sue everyone, there's really nothing you can do about that except defend yourself. I'm guessing that if franchisees are actually served, there will be a counter-suite tuite suite. Mr. Mudd may find out that simmering anger turns the horns of the bull from a quandry into a real battle. It would seem that there are plenty of former Dermacare corporate employees who have no love lost for Carl Mudd.

Carl Mudd and Dermacare may have bitten off more than it can chew.