What determines the expiration date of the Initial Term for a My Salon Suite franchise agreement?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
a. Initial Term. This Franchise Agreement shall be effective and binding from the date of its execution by Franchisor and will expire on the earlier of the date that is ten (10) years from the date the Franchisee first opens the Franchised Business at the Approved Location, or the date the initial term of the Franchisee's lease expires, unless earlier terminated by Franchisor under this Franchise Agreement ("Initial Term").
- b. Renewal Term. Franchisee shall have the right to renew this Franchise Agreement for two (2) additional, successive terms of ten (10) years (each a "Renewal Term," and together with the Initial Term, the "Term"), if all the following conditions have been fulfilled:
- (1) Franchisee has, during the entire term of this Franchise Agreement, substantially complied with all material provisions;
- (2) Franchisee has access to and, for the duration of the Renewal Term, the right to remain in possession of the Approved Location, or a suitable substitute location approved by Franchisor, which must be in full compliance with Franchisor's System Standards;
- (3) Franchisee has at its expense, made such capital expenditures as were necessary to maintain uniformity with any System modifications such that the Franchised Business reflects the System Standards prior to the effective date of the Renewal Franchise Agreement (as defined below);
- (4) Franchisee has satisfied all monetary obligations owed by Franchisee to Franchisor (or any Affiliate) and has timely met these obligations throughout the term of this Franchise Agreement;
- (5) Franchisee is not in default of any provision of this Franchise Agreement or any other agreement between Franchisee and Franchisor, its Affiliates or any of Franchisor's Approved Vendors (as defined in this Franchise Agreement);
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the Initial Term of the Franchise Agreement is determined by two factors. The agreement is effective from the date it is executed by My Salon Suite and will expire either ten years from the date the franchisee first opens their salon at the approved location, or on the date the franchisee's lease expires, whichever comes first. The Initial Term is subject to early termination by My Salon Suite under certain conditions outlined in the Franchise Agreement.
This means that a prospective My Salon Suite franchisee needs to be aware of the lease terms for their approved location, as a shorter lease term than ten years will limit the duration of their initial franchise agreement. Conversely, if the lease extends beyond the ten-year mark, the franchise agreement will still end after ten years unless renewed.
My Salon Suite also offers the option to renew the Franchise Agreement for two additional terms of ten years each, provided certain conditions are met. These conditions include substantial compliance with all material provisions of the agreement, maintaining access to the approved location, making necessary capital expenditures to maintain uniformity with system standards, satisfying all monetary obligations, and not being in default of any agreement with My Salon Suite or its affiliates.