What is excluded from the EBITDA calculation for a My Salon Suite franchise?

According to My Salon Suite's 2025 Franchise Disclosure Document, EBITDA is defined as Earnings Before Interest, Taxes, Depreciation, and Amortization. The FDD specifies that the EBITDA calculation excludes any debt service and interest payments. It is calculated by subtracting the General Operating Expense and Rent Expense from Income. General Operating Expenses include professional fees, repair and maintenance, insurance, permit and fees, telephone, water and sewer, garbage, electricity, gas, internet, office expenses, advertising and marketing, technology fee, and security system.

For a prospective My Salon Suite franchisee, understanding what is included and excluded from the EBITDA calculation is crucial for assessing the potential profitability of the franchise. By excluding debt service and interest payments, the EBITDA provides a clearer picture of the operational earnings potential of the business, without factoring in financing costs.

However, it's important to note that the FDD also states that the Franchisor is unable to verify the accuracy of the expense information provided by My Salon Suite franchisees and makes no representations or warranties regarding the same. The amount of gross sales realized, and expenses incurred will vary from unit to unit. Prospective franchisees should conduct their own due diligence and consult with financial advisors to develop realistic financial projections based on their specific circumstances and location.