What is the estimated start-up phase duration used for disclosure purposes by My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
These amounts represent our estimate of the amount needed to cover your expenses for the initial 3-month start-up phase of your Franchised Business.
These figures do not include standard pre-opening expenses, Royalty Fees, or Brand Building Fund contributions payable under the Franchise Agreement, or debt service, and assume that none of your expenses are offset by any sales generated during the start-up phase.
For purposes of this disclosure, we estimated the start-up phase to be 3 months from the date your Franchised Business opens for business.
These figures are estimates, and we cannot guarantee that you will not have additional expenses starting your Franchised Business.
You must bear any deviation or escalation in costs from the estimates that we have given.
Additional funds for the operation of your Franchised Business will be required after the first three (3) months of operation if sales produced by the Franchised Business are not sufficient to produce positive cash flow.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 29–35)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the company estimates a 3-month start-up phase for a new franchise. This 3-month period is used to calculate the estimated additional funds a franchisee may need to cover initial expenses. These expenses do not include pre-opening costs, Royalty Fees, Brand Building Fund contributions, or debt service. The estimate also assumes that the franchisee will not generate any sales during this initial phase.
My Salon Suite bases this 3-month estimate on their 10 years of experience in franchising and overseeing franchisee operations, as well as data from recently opened franchise locations. However, the document explicitly states that these figures are estimates and that actual expenses may vary. Franchisees are responsible for covering any costs that exceed the provided estimates.
Prospective My Salon Suite franchisees should carefully consider this 3-month start-up phase when planning their finances. It is crucial to have sufficient capital to cover both the estimated expenses and any potential cost overruns. Additionally, franchisees should be prepared to operate without generating significant revenue during this initial period. It's important to note that additional funds may be required beyond the first three months if the business does not achieve positive cash flow.
While My Salon Suite provides this estimate, it is essential for potential franchisees to conduct their own thorough financial analysis and consult with business advisors to determine their specific needs and financial projections. Understanding the assumptions behind the estimate and planning for potential variations is key to a successful launch.