What is the financed amount for the initial fee when financing with My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item | Source of | Down | Amount | Term | Interest | Monthly | Prepay | Security | Liability | Loss of |
|---|---|---|---|---|---|---|---|---|---|---|
| Financed | Financing | Payment | Financed | (Yrs.) | Rate | Payment | Penalty | Required | Upon Default | Legal Right on Default |
| Initial | Us(note 1) | $15,000 | $35,000 | 3 (Note | 0% | $972.22 | None | Personal | Loss of | Waive |
| Fee | (Note 1) | (Note 1) | 1) | (Note 1) | (Note 1) | (Note 1) | Guarantee (Note 1) | franchise unpaid loan (Note 2) | notice. Confess judgment (Note 3) |
Notes:
(1) If you are a Conversion Franchisee and you meet our credit standards and qualify for financing, we may offer you financing for a portion of the initial franchise fee necessary to establish your Conversion Franchise. If you pay us $15,000 of the initial franchise fee, we will finance $35,000 of the initial franchise fee (See Item 5). If you obtain financing from us, you will be required to sign a promissory note in the form attached as Exhibit F to this Disclosure Document (the "Note"). The Note provides for payment to us over a 36-month period at 0% interest per annum paid in monthly installments. There are no additional finance charges. The first payment on the Note is due 30 days after you commence operating your Conversion Franchise. If you finance the full amount, your monthly installment payment will be $972.22. We will debit your business checking account automatically for the monthly installment payment on the 25th day of each month. We also require that the Note be guaranteed by your principals if you are a corporation or other business entity. We require no other security interest in the Note.
Source: Item 10 — FINANCING (FDD pages 41–42)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, My Salon Suite may offer financing for a portion of the initial franchise fee to Conversion Franchisees who meet their credit standards. Specifically, if a qualifying franchisee pays $15,000 of the initial franchise fee, My Salon Suite will finance $35,000. The total conversion franchise fee is $50,000.
The financing terms include a promissory note requiring payments over a 36-month period with 0% interest per annum, paid in monthly installments of $972.22. The first payment is due 30 days after the Conversion Franchise commences operations. My Salon Suite will automatically debit the franchisee's business checking account on the 25th of each month. The promissory note must be guaranteed by the principals of the franchisee if the franchisee is a corporation or other business entity. Franchisees can prepay the note without penalty.
It is important to note that a franchisee may be required to pay a higher down payment than the stated $15,000, or even the full initial franchise fee, if they do not meet My Salon Suite's minimum credit standards. This condition highlights the importance of understanding the franchisor's credit requirements and assessing one's own financial standing before committing to the franchise. Prospective franchisees should carefully review Exhibit F, which contains the promissory note, to fully understand the terms and conditions of the financing agreement.