factual

Who are considered 'principals' of the My Salon Suite franchisee for the purposes of termination conditions?

My_Salon_Suite Franchise · 2025 FDD

Answer from 2025 FDD Document

If Franchisee is a partnership, corporation, or limited liability company ("Entity"), at least one (1) of the trainees must be Franchisee's general partner, principal shareholder or manager, as applicable.

Franchisee (or at least one of Franchisee's principals if Franchisee is an Entity) must personally supervise the day-today operations of the Franchised Business.

These Early Termination Damages shall constitute liquidated damages and are not to be construed as a penalty and shall be the joint and several liability of Franchisee and each of Franchisee's Owners who personally guarantee Franchisee's obligations under this Franchise Agreement.

Source: Item 23 — RECEIPTS (FDD pages 95–230)

What This Means (2025 FDD)

According to the 2025 My Salon Suite FDD, if the franchisee is a partnership, corporation, or limited liability company (referred to as an "Entity"), at least one of the trainees in the initial training program must be the franchisee's general partner, principal shareholder, or manager, as applicable. This individual and any additional individuals designated by the franchisee prior to opening the franchise are provided the My Salon Suite University training tuition-free.

For My Salon Suite, the participation of at least one of the franchisee's principals is essential for supervising the day-to-day operations. This principal must dedicate their best efforts to managing and operating the franchised business, ensuring customer access during the hours specified in the manual. However, the franchisee can delegate these daily operations to a designated manager, provided that the manager is approved by My Salon Suite in writing before hiring and successfully completes the My Salon Suite University training program before assuming any managerial responsibilities.

Furthermore, the FDD specifies that if My Salon Suite terminates the Franchise Agreement due to the franchisee's breach, the franchisee must pay Early Termination Damages. These damages are calculated based on the average monthly Royalty Fees and Brand Building Fund Contributions. The obligation to pay these Early Termination Damages is the joint and several liability of the franchisee and each of the franchisee's owners who personally guarantee the franchisee's obligations under the Franchise Agreement. This indicates that the 'principals' who are owners and guarantors are held financially responsible in case of early termination due to a breach.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.