Can an existing My Salon Suite franchisee be a transferee?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
(10) The transferee must obtain, within the time limits set by Franchisor, and maintain thereafter, all permits, and licenses required for the operation of the Franchised Business;
(11) To the extent required by the terms of any leases or other agreements, the lessor or other parties must have consented to the proposed transfer;
(12) The transfer must be made in compliance with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises;
(13) The purchase price and terms of the proposed transfer are not so burdensome to the prospective transferee as to impair or materially threaten its future operation of the Franchised Business and performance under its franchise agreement;
(14) (a) Franchisee has corrected any existing deficiencies of the Franchised Business of which Franchisor has notified Franchisee on a punch list or in other communications, and/or (b) the transferee agrees (if the transfer is of this Agreement) to upgrade, remodel, expand and/or refurbish the Franchised Business and to add or replace services, equipment, and/or other items required to operate the Franchised Business, in accordance with Franchisor's then current requirements and specifications for My Salon Suite Franchised Businesses within the time period Franchisor specifies following the effective date of the transfer;
(15) Franchisee must request that Franchisor provide the prospective transferee with Franchisor's current form of disclosure document and Franchisor shall not be liable for any representations not included in the disclosure document;
(16) Franchisor's approval of the transfer shall not constitute a waiver of any claims Franchisor may have against the transferring party;
(17) Franchisor shall have the right to disclose to any prospective transferee such revenue reports and other financial information concerning Franchisee and Franchisee's Franchised Business as Franchisee has supplied Franchisor hereunder; and
(18) In any event, Franchisor may withhold or condition Franchisor's consent to any transfer as Franchisor deems appropriate based on the circumstances of the transfer or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not explicitly state whether an existing My Salon Suite franchisee can be a transferee. However, Item 23 outlines several conditions and requirements related to the transfer of a franchise, which would apply to any potential transferee, including an existing franchisee.
These conditions cover various aspects of the transfer process, such as obtaining necessary permits and licenses, ensuring lessor consent, complying with applicable laws, and meeting the franchisor's standards for the business. Additionally, the franchisor retains the right to approve or deny any transfer based on its assessment of the circumstances.
To determine whether an existing franchisee is eligible to be a transferee, it is important to review the full context of Item 23 in the Franchise Disclosure Document and consult with the franchisor directly. This will provide a clear understanding of any specific restrictions or requirements that may apply to existing franchisees seeking to acquire additional My Salon Suite locations through a transfer.