Does the My Salon Suite Franchise Agreement specify any prohibited actions that could jeopardize a franchisee's eligibility for 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 actions or failures can prevent a franchisee from being eligible for renewal. To renew the franchise agreement, a franchisee must be in good standing and meet specific requirements. These requirements include providing timely notice of renewal, demonstrating the right to operate at the approved location, completing all required updates and renovations to meet current system standards, and not being in breach of any agreement with My Salon Suite or its affiliates.
Additionally, the 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, including higher fees. Satisfying then-current training requirements and executing a general release in favor of My Salon Suite and its affiliates are also necessary. Finally, the franchisee must pay a renewal franchise fee equal to 15% of the then-current initial franchise fee.
In summary, My Salon Suite franchisees need to adhere to all contractual obligations, maintain the standards of the franchise system, and meet all financial and training obligations to be eligible for renewal. Failure to meet these conditions could result in the denial of their renewal application.