Does the My Salon Suite FDD disclose any bankruptcy filings related to the My Salon Suite franchisor?

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

This statement indicates that while My Salon Suite's standard franchise agreement includes a clause allowing them to terminate the agreement if a franchisee declares bankruptcy, this clause's enforceability is questionable under federal law. This is a fairly standard inclusion in franchise agreements, as franchisors want to protect their brand and system standards. However, federal bankruptcy law is designed to provide individuals and businesses a fresh start, which can sometimes conflict with strict contractual terms.

Prospective My Salon Suite franchisees should be aware of this clause and understand that its application may be limited by federal law. It is advisable to seek legal counsel to fully understand the implications of this clause and how it might affect them in the event of financial distress leading to bankruptcy. This is especially important for franchisees who may be taking on significant debt to start or operate their My Salon Suite business.