factual

What are some examples of 'Limited Services' that My Salon Suite may impose on a franchisee in default?

My_Salon_Suite Franchise · 2025 FDD

Answer from 2025 FDD Document

If Franchisee is in default of this Franchise Agreement, Franchisor may, at Franchisor's option, elect to impose interim remedies and/or limited services on the Franchised Business ("Limited Services") rather than terminate the Franchise Agreement.

Franchisor will provide written notice to Franchisee before placing Franchisee on Limited Services.

If Franchisee is in default and receiving Limited Services, Franchisor may terminate this Franchise Agreement at any time if Franchisee fails to cure the default.

Limited Services may include:

  • (1) the Franchised Business' web page(s) being removed from mysalonsuite.com;

  • (2) not providing Franchisee with access to Brand Building Fund funded services;

  • (3) removal of Franchisee's or Franchisee's personnel from the Google Workspace email platform and other Google Workspace functions;

  • (4) Franchisee not being eligible to attend any Franchisor events;

  • (5) not providing Franchisee with access to My Salon Suite, online training, refresher courses or advanced training;

  • (6) not providing Franchisee with access to design services, layout services or real estate services;

  • (7) Franchisee not being eligible to purchase or open additional franchised businesses;

  • (8) requiring Franchisee to resign from the Advisory Council board (if applicable); and

  • (9) the Franchised Business' visits limited to only what is required by this Franchise Agreement; and/or

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

What This Means (2025 FDD)

According to the 2025 My Salon Suite Franchise Disclosure Document, if a franchisee defaults on their agreement, My Salon Suite has the option to impose 'Limited Services' on the franchised business instead of immediately terminating the agreement. The franchisee will receive written notice before being placed on Limited Services. However, My Salon Suite retains the right to terminate the agreement at any time if the franchisee fails to correct the default, even while receiving Limited Services.

These Limited Services can take various forms, directly impacting the franchisee's access to My Salon Suite's resources and support systems. For example, My Salon Suite may remove the franchised business's webpage from the mysalonsuite.com website, effectively reducing the business's online visibility. Additionally, the franchisee may lose access to services funded by the Brand Building Fund, which could hinder marketing and promotional efforts.

Furthermore, My Salon Suite can remove the franchisee and their personnel from the Google Workspace email platform and other Google Workspace functions, disrupting communication and operational workflows. The franchisee may also be barred from attending any My Salon Suite events, limiting networking and learning opportunities. Access to My Salon Suite's online training, refresher courses, and advanced training programs may also be revoked, potentially affecting the staff's skill development and service quality. The franchisee may also lose access to design, layout, and real estate services, which could impact the business's ability to adapt and expand.

Finally, a franchisee under Limited Services may be prohibited from purchasing or opening additional franchised businesses, restricting growth opportunities. If applicable, the franchisee may be required to resign from the Advisory Council board, losing their voice in the franchise system's decision-making processes. The franchised business's visits may be limited to only what is required by the Franchise Agreement, reducing the level of support and oversight from the franchisor.

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.