What is the initial late fee for submitting late reports to My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchisor may possess, as permitted by law. Franchisee acknowledges that this paragraph shall not constitute agreement by the Franchisor to accept such payments after they are due or a commitment by the Franchisor to extend credit to, or otherwise finance Franchisee's operation of Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due will constitute grounds for termination of this Franchise Agreement if non-payment is not timely cured as set forth in this Franchise Agreement.
- H. Late Fee for Submission of Late Report. If Fr
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, if a franchisee fails to submit required reports such as Gross Revenue reports or financial statements on time, My Salon Suite has the right to charge a $100 initial fee per occurrence. In addition to the initial fee, My Salon Suite may also charge a late fee of $50 for each day the report remains overdue. This daily late fee is subject to reduction if it exceeds the maximum amount permitted by applicable law. My Salon Suite also retains the right to debit the franchisee's bank account for these fees.
This policy highlights the importance of timely and accurate reporting for My Salon Suite franchisees. The initial $100 fee, coupled with the subsequent $50 daily late fee, could quickly become a significant financial burden if reports are consistently submitted late. Franchisees should implement robust systems to ensure all reports are completed and submitted by the due date to avoid these penalties.
It is important to note that these late fees are in addition to any other remedies My Salon Suite may have available, such as terminating the Franchise Agreement for repeated non-compliance. Franchisees should be aware of these potential consequences and prioritize timely reporting to maintain a positive relationship with the franchisor and avoid financial penalties.