factual

What constitutes 'good cause' for My Salon Suite to terminate a franchise agreement?

Q: What constitutes 'good cause' for My Salon Suite to terminate a franchise agreement?

- (g) A provision which permits us to refuse to permit a transfer of ownership of a Franchise, except for good cause. This subdivision does not prevent us from exercising a right of first refusal to purchase the Franchise. Good cause shall include, but is not limited to: - (i) the failure of the proposed transferee to meet our then-current reasonable qualifications or standards. - (ii) the fact that the proposed transferee is a competitor of ours or oursubfranchisor. - (iii) the unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations. My Salon Suite Source: Item 23 — RECEIPTS (FDD pages 95–230)

My_Salon_Suite Franchise · 2025 FDD

Answer from 2025 FDD Document

(g) A provision which permits us to refuse to permit a transfer of ownership of a Franchise, except for good cause.

This subdivision does not prevent us from exercising a right of first refusal to purchase the Franchise.

Good cause shall include, but is not limited to:

(i) the failure of the proposed transferee to meet our then-current reasonable qualifications or standards.
(ii) the fact that the proposed transferee is a competitor of ours or oursubfranchisor.
(iii) the unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations.

My Salon Suite

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

What This Means (2025 FDD)

According to the 2025 My Salon Suite Franchise Disclosure Document, 'good cause' for the franchisor to refuse a transfer of ownership includes several factors. These include the proposed transferee's failure to meet My Salon Suite's current qualifications or standards, if the transferee is a competitor, or if the transferee is unwilling to comply with all lawful obligations in writing.

Additionally, 'good cause' exists if either the current franchisee or the proposed transferee fails to pay sums owed to My Salon Suite or fails to correct any existing default in the Franchise Agreement at the time of the proposed transfer. This definition protects My Salon Suite's brand standards and financial interests by ensuring that any new franchisee meets their criteria and is in good standing.

It is important to note that this definition of 'good cause' specifically applies to the transfer of ownership. The FDD may contain other clauses outlining reasons for termination of the franchise agreement that are not related to transfer of ownership. A prospective franchisee should carefully review the entire FDD and consult with a legal professional to fully understand the conditions under which My Salon Suite can terminate the franchise agreement.

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.

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