Does a My Salon Suite franchisee have the right to offset payments owed to the franchisor?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
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- No Right to Offset. You may not withhold all or any part of any payment to Franchisor or any of its affiliates on the grounds of the alleged nonperformance of Franchisor or any of its affiliates or as an offset against any amount Franchisor or any of its affiliates may owe, or allegedly owe, you under this Agreement or any related agreements.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from offsetting payments owed to the franchisor. The agreement states that a franchisee cannot withhold any payment, or any part of a payment, to My Salon Suite or its affiliates based on alleged nonperformance by the franchisor. This also applies if the franchisee believes My Salon Suite or its affiliates owe them money under the Franchise Agreement or any related agreements.
This no-offset provision is a standard clause in many franchise agreements. It means that the franchisee must continue to pay all required fees and other payments to My Salon Suite, regardless of any dispute or claim the franchisee may have against the franchisor. If a franchisee believes My Salon Suite has breached the agreement or owes them money, the franchisee must pursue those claims separately, without withholding payments.
The implication for a prospective My Salon Suite franchisee is that they must have the financial resources to continue meeting their payment obligations to the franchisor, even if they have a dispute. Failure to make timely payments could result in penalties, interest charges, or even termination of the franchise agreement. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement and to determine the best course of action in the event of a dispute with My Salon Suite.