What is the amount financed by My Salon Suite for the conversion franchise fee?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item 17 | | y. Owners Agreement | Section 18.M | Item 15 |
FINANCING
We do not offer direct (except as described below) or indirect financing for a new My Salon Suite franchised business. We do offer financing of the conversion franchise fee of $50,000 as outlined below. We do not guarantee your note, lease, or obligations.
| Item | Source of | Down | Amount | Term | Interest | Monthly | Prepay | Security | Liability | Loss of |
|---|---|---|---|---|---|---|---|---|---|---|
| Financed | Financing | Payment | Financed | (Yrs.) | Rate | Payment | Penalty | Required | Upon Default | Legal Right on Default |
| Initial |
Source: Item 10 — FINANCING (FDD pages 41–42)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, My Salon Suite offers financing for the conversion franchise fee. My Salon Suite may finance $35,000 of the initial franchise fee if a franchisee pays $15,000 of the initial franchise fee. The total conversion franchise fee is $50,000.
The amount financed is documented in a promissory note with a 0% annual interest rate, payable over 36 months. The monthly payment is $972.22, with the first payment due 30 days after the Conversion Franchise begins operation. Payments are automatically debited from the franchisee's business checking account on the 25th of each month. Franchisees can prepay the note without incurring any penalties.
My Salon Suite requires a personal guarantee from the principals if the franchisee is a corporation or other business entity. Defaulting on the note can lead to the termination of the franchise agreement, with all outstanding principal immediately due. Additionally, the franchisee is responsible for covering all costs and expenses My Salon Suite incurs while enforcing the note. My Salon Suite does not receive any consideration for offering financing and does not intend to sell, assign, or discount the note to a third party.