According to My Salon Suite's 2025 Franchise Disclosure Document, the amortization of the right-of-use asset for the year ended December 31, 2022, was $3,957,006. This figure reflects the expense recognized from using the leased assets, primarily commercial retail space, over their useful life. These assets are associated with My Salon Suite and Salon Plaza brands, where compartmentalized suites are subleased to beauty professionals.

The right-of-use asset represents My Salon Suite's right to use an asset for the lease term. Amortization of this asset is an accounting method to allocate the cost of the asset over its useful life, reflecting the economic benefit My Salon Suite receives from using the leased space. The leases typically do not extend beyond 10 years but often include 5-year renewal options. These renewals are usually included in the calculation of lease liabilities and right-of-use assets due to the significant construction costs associated with the compartmentalized footprint of My Salon Suite locations.

For a prospective franchisee, understanding the amortization of right-of-use assets is crucial because it impacts the company's financial statements and profitability. It is also important to note that the company has elected not to recognize short-term leases with an initial term of 12 months or less as lease liabilities and right-of-use assets. Instead, the rent expense associated with these short-term leases is recognized on a straight-line basis over the lease term. This accounting treatment can affect how lease expenses are reported and should be considered when evaluating the financial performance of My Salon Suite.