What is the definition of 'Approved Location' in the context of My Salon Suite franchise termination?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, the Franchise Agreement requires Tenant to obtain Franchisor's prior written approval of the location for Tenant's Franchised Business (the "Approved Location") before entering into a lease with the owner or master tenant of the Approved Location (the "Lease");
WHEREAS, one of the factors that Franchisor considers in approving a location for Tenant's Franchised Business is the agreement of the owner or master tenant of the Approved Location to incorporate certain provisions as part of the Lease to protect Franchisor's interests and give Franchisor specific rights as a third-party beneficiary;
Franchisor may terminate this Franchise Agreement upon notice to Franchisee if Franchisee fails to obtain an Approved Location within nine (9) months of the Effective Date unless Franchisor agrees to a longer period.
- (4) If you plan to purchase the building where the Approved Location for your Franchised Business will be, then the landlord entity that owns the building must be a separate entity from the franchisee entity.
We must approve the lease.
- (5) Franchisee understands and acknowledges that: (i) the location of the Franchised Business is one of many considerations in the potential success of the Franchised Business; and (ii) Franchisor's approval of any proposed location does not constitute any type of representation or guarantee by Franchisor with respect that Franchisee will succeed at the selected Approved Location or constitute an expression of Franchisor's opinion regarding the terms of the Lease.
Franchisor encourages Franchisee to seek independent counsel from a lawyer or business adviser to assist Franchisee in selecting a location and negotiating a lease for the Franchised Business.
At the time the parties entered into the Franchise Agreement, Franchisee had not obtained and secured a lease for a location from which to operate a Franchised Business granted under the Franchise Agreement (the "Franchised Business") that Franchisor approved in writing (the "Approved Location").
Within nine (9) months after Franchisee's execution of the Franchise Agreement, Franchisee must purchase or lease an Approved Location, at Franchisee's expense, that Franchisor approves in accordance with the site selection procedure set forth in Sections 2.B. and 7 of the Franchise Agreement.
- **B.
Zoning Clearances, Permits and Licenses**.
Franchisee shall be responsible for obtaining all zoning classifications and clearances which may be required by state or local laws, ordinances, or regulations or which may be necessary due to any restrictive covenants relating to the Franchised Business and/or the Approved Location.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the 'Approved Location' is a location that My Salon Suite has given prior written approval for the franchisee to operate their franchised business. This approval must be obtained before the franchisee enters into a lease agreement with the property owner. My Salon Suite considers the lease agreement's provisions, ensuring they protect My Salon Suite's interests as a third-party beneficiary, as part of the location approval process.
My Salon Suite may terminate the franchise agreement if the franchisee fails to secure an Approved Location within nine months of the franchise agreement's effective date, unless My Salon Suite agrees to extend this period. This highlights the importance of finding a suitable location promptly and obtaining My Salon Suite's approval to avoid potential termination of the franchise agreement. The franchisee is responsible for all costs associated with purchasing or leasing the Approved Location.
Furthermore, the franchisee is responsible for obtaining all necessary zoning clearances, permits, and licenses required by state or local laws for the operation of the franchised business at the Approved Location. My Salon Suite's approval of a location does not guarantee the franchisee's success at that location, and the franchisee is encouraged to seek independent legal and business advice during the site selection and lease negotiation process. The landlord entity that owns the building must be a separate entity from the franchisee entity if the franchisee plans to purchase the building where the Approved Location will be.