Are the fees and expenses described in Item 6 of the My Salon Suite FDD refundable?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: Initial Fees]
Notes:
- (1) Fees. All fees and expenses described in this Item 6 are non-refundable. Except as indicated in the chart above, all fees and expenses are imposed by, and are payable to, us. Except as specifically stated above, the amounts given may increase based on changes in market conditions, our cost of providing services and future policy changes. Currently, we have no plans to increase payments over which we have control.
- (2) Gross Revenues. "Gross Revenues" includes all revenues from your sale of any services and products at or from the Center and all other revenues of every kind and nature related to operating the Center. Gross Sales does not include any sales tax or other taxes you collect from your customers and transmit to the appropriate taxing authority.
Source: Item 5 — Initial Fees (FDD pages 18–28)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, all fees and expenses described in Item 6 are non-refundable. This means that once a franchisee pays any of the fees outlined in Item 6, they cannot get that money back, regardless of the circumstances.
This non-refundable policy has significant implications for prospective My Salon Suite franchisees. It underscores the importance of careful due diligence and financial planning before investing in a franchise. Franchisees should thoroughly research the opportunity, understand all associated costs, and ensure they have sufficient capital before committing to the agreement.
The FDD notes that the amounts given may increase based on changes in market conditions, the cost of providing services, and future policy changes. Currently, My Salon Suite has no plans to increase payments over which they have control. Franchisees should be aware of this policy and factor in potential cost increases when budgeting for their franchise. It is common practice in the franchise industry for certain fees, particularly initial franchise fees, to be non-refundable, as they cover the franchisor's costs in evaluating and onboarding the franchisee.