How can a My Salon Suite franchisee obtain an annual accounting of the Brand Building Fund?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
We may reimburse ourselves, our authorized representatives, or our affiliate from the Brand Building Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting, and legal expenses, taxes and all other reasonable direct or indirect expenses that may be incurred by us or our authorized representatives and associated with the programs funded by the Brand Building Fund. We assume no fiduciary duty to you or other direct or indirect liability or obligation to collect amounts due to the Brand Building Fund or to maintain, direct, or administer the Brand Building Fund. Any unused funds in any calendar year will be applied to the following year's funds, and we may contribute or loan additional funds to the Brand Building Fund on any terms we deem reasonable. Because this fund would not be audited, audited financial statements will not be available to franchisees. We will provide an annual accounting for the Brand Building Fund that shows how the Brand Building Fund proceeds have been spent for the previous year upon written request.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 42–53)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, a franchisee can obtain an annual accounting of the Brand Building Fund by submitting a written request. This annual accounting will detail how the Brand Building Fund's proceeds were spent in the previous year.
My Salon Suite's Brand Building Fund is used for various marketing and advertising activities, including public relations, media placement, content creation, market research, advertising, and administrative expenses. For the fiscal year ending December 31, 2024, the fund allocations were as follows: 3% on public relations, 14% on media placement, 8% on national content creation expenses, 18% on market research and creative agencies, 35% on advertising and advertising tools, and 22% on marketing personnel and other administrative expenses. Franchisees are required to contribute to this fund, with the current contribution being $200 per month, which My Salon Suite can increase up to 2% of the franchisee's monthly Gross Revenues.
It is important to note that the Brand Building Fund is not audited, so audited financial statements are not available to franchisees. Any unused funds from a calendar year are rolled over into the following year's funds. My Salon Suite may also contribute or loan additional funds to the Brand Building Fund under terms they deem reasonable. While My Salon Suite may reimburse itself or its representatives for various expenses related to the fund's administration, they assume no fiduciary duty to franchisees regarding the fund's collection, maintenance, or administration.