Does the My Salon Suite Franchise Agreement specify any prohibited actions that could automatically disqualify a franchisee from renewal?
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 |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 62–76)
What This Means (2025 FDD)
According to the 2025 My Salon Suite Franchise Disclosure Document, several factors could prevent a franchisee from renewing their agreement. To be eligible for renewal, a franchisee must be in good standing and meet specific requirements outlined in Sections 4.A through 4.B of the Franchise Agreement.
Specifically, the franchisee must provide notice of renewal between 9 months and one year before the end of the current term. They must also demonstrate the right to operate at the approved location or secure a substitute location acceptable to My Salon Suite. All necessary maintenance, refurbishing, renovations, and updates to the premises, hardware, and software must be completed to meet the then-current standards for new franchisees.
Critically, the franchisee must not be in breach of any provision of the Franchise Agreement or any other agreement with My Salon Suite, its affiliates, or approved vendors, and must be in substantial compliance with these agreements. All monetary obligations to My Salon Suite, its affiliates, and approved vendors must be satisfied. Additionally, the franchisee must execute the then-current form of the franchise agreement, which may contain materially different terms, including potentially higher royalty fees and brand building fund contributions. The franchisee must also satisfy then-current training requirements and execute a general release in favor of My Salon Suite and its affiliates. Finally, a renewal fee equal to 15% of the then-current initial franchise fee must be paid.