Does the My Salon Suite FDD specify the exact criteria for being in 'good standing'?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| b. Renewal or | Section 4.B. of Franchise | If you are in good standing and you meet | | extension | Agreement | other requirements, you may enter | | ofterm | | | | | | 2 consecutive renewal | | | | terms of 10 | | | | years. | | c. Requirementsfor | Sections 4.A. through | Your renewal franchise rights permit | | you to renew or extend | 4.B. of Franchise Agreement | you to remain as a Franchisee after the initial term of your Franchise Agreement expires. You must: (i) provide notice of your renewal no fewer than 9 months and no greater than one (1) year prior to the end of the term; (ii) demonstrate to our satisfaction that you have the right to operate the Franchised Business at the Approved Location for the duration of the renewal term or, if you are unable to continue operating at the Approved Location, secure a substitute location that is acceptable to us; (iii) complete all maintenance, refurbishing, renovating, updating, and remodeling of the | | Provision | Section | Summary | | | in | | | | Franchise | | |--------------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | Agreement | Franchised Business premises, as well | | | | as | | | | any updates to required hardware and | | | | software, to comply with our then | | | | current Franchise System standards and | | | | specifications for new franchisees; (iv) | | | | not be | | | | in breach of any provision of the | | | | Franchise | | | | Agreement | | | | or | | | | any | | | | other | | | | agreement | | | | with | | | | us | | | | our | | | | affiliates, | | | | Approved Vendors, and also be in | | | | substantial | | | | compliance | | | | with | | | | these | | | | agreements | | | | during | | | | their | | | | respective | | | | terms; | | | | (v) | | | | satisfy | | | | all | | | | monetary | | | | obligations you have to | | | | us, our affiliates, | | | | and approved or designated vendors; | | | | (vi) execute our then-current form of | | | | franchise agreement and any ancillary | | | | documents | | | | for | | | | the | | | | renewal | | | | term, | | | | and | | | | this | | | | new franchise agreement may have | | | | materially | | | | different | | | | terms | | | | and | | | | conditions | | | | (including, | | | | for | | | | example, | | | | higher Royalty Fees | | | | and | | | | Brand Building | | | | Fund Contributions) from the Franchise | | | | Agreement that covered your initial | | | | term; | | | | (vii) | | | | satisfy | | | | our | | | | then-current | | | | training | | | | requirements | | | | for | | | | renewing | | | | franchisees | | | | at your sole expense prior to | | | | the renewal | | | | date; | | | | (viii) | | | | execute a general | | | | release in favor of us and our affiliates | | | | in the form | | | | we | | | | prescribe; | | | | and | | | | (ix) | | | | pay us | | | | a renewal | | | | franchise | | | | fee equal to 15% of | | | | our then- current | | | | initial | | | | franchise | | | | fee | | | | for |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 62–76)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the term "good standing" is referenced in the context of franchise renewal. To be in good standing and thus eligible for renewal, a franchisee must meet several requirements. These include providing timely notice of renewal, demonstrating the right to operate at the approved location, completing all necessary refurbishments to meet current system standards, and not being in breach of any agreements with My Salon Suite, its affiliates, or approved vendors.
Additionally, a franchisee must be in substantial compliance with all agreements during their terms and satisfy all monetary obligations to My Salon Suite, its affiliates, and approved vendors. They must also execute the then-current form of the franchise agreement, which may contain materially different terms, and meet the then-current training requirements for renewing franchisees at their own expense. Furthermore, franchisees must execute a general release in favor of My Salon Suite and its affiliates and pay a renewal franchise fee equal to 15% of the then-current initial franchise fee for a new Franchised Business.
These criteria provide a comprehensive overview of what My Salon Suite expects from its franchisees to maintain a healthy and mutually beneficial franchise relationship, ensuring that franchisees meet the brand's standards and obligations. Meeting these requirements is crucial for franchisees who wish to continue operating under the My Salon Suite brand beyond the initial term.