Does the My Salon Suite FDD describe any exceptions to the standard bankruptcy clauses?

According to the 2025 My Salon Suite Franchise Disclosure Document, the Franchise Agreement provides for termination upon bankruptcy. However, the FDD notes that this provision may not be enforceable under Federal Bankruptcy Law (11 U.S.C.A Sec. 101 et seq.).

This statement serves as a critical disclosure for potential franchisees. While the standard franchise agreement allows My Salon Suite to terminate the agreement if a franchisee declares bankruptcy, federal law might override this provision. This means that a franchisee's bankruptcy proceedings could potentially continue the franchise agreement, allowing them to reorganize and continue operating the business.

This exception is important because it provides a degree of protection for franchisees facing financial difficulties. Bankruptcy law is designed to give debtors a chance to rehabilitate their finances, and the disclosure suggests that My Salon Suite franchisees may be able to leverage these protections to preserve their business. Prospective franchisees should consult with a legal expert to fully understand their rights and obligations under both the franchise agreement and federal bankruptcy law.