Which item in the My Salon Suite Disclosure Document relates to post-term obligations?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
Post-Term Covenant Not to Compete.
In further consideration for the disclosure to Covenantor of the Confidential Information and to protect the goodwill and unique qualities of the My Salon Suite system, Covenantor agrees that for a continuous uninterrupted period of two (2) years that Covenantor will not, directly or indirectly, for themselves, or through, on behalf of or in conjunction with any person(s) or Entity:
- (i) Franchising or Licensing Activities*.* Be involved with any business competing in whole or in part with SMF in granting franchises or licensing, or establishing joint ventures, for one or more businesses that engage in the rental of salon studio spaces or that offer or provide any of the other products/services that are offered by the Franchised Business;
- (ii) Other Competing Businesses*.* Own, maintain, engage in, have any interest in, or be employed as an officer, director, executive, or principal of any other Competing Business within the following areas: (i) at the location of the Franchised Business; (ii) within Franchisee's territory; (iii) within a radius of 20 miles of the perimeter of the Franchisee's territory granted hereunder; or (iv) within a radius of 20 miles of the perimeter of any other protected territory licensed by SMF to any third party or any Franchised Business that is in operation or under development, as of the date of expiration, transfer or termination of this Franchise Agreement through the date of Covenantor's involvement in the Competing Business; or
- (iii) Vendor Usage*.* Contact any of SMF's vendors for any competitive business purpose.
Irreparable Injury.
Covenantor agrees that in the event of a breach of this Agreement, Franchisee and SMF would be irreparably injured and would be without an adequate remedy at law. Therefore, in the event of such a breach or threatened breach, Franchisee and/or SMF shall be entitled, in addition to any other remedies which are made available to it at law or equity, to a temporary and/or permanent injunction, without the necessity of showing actual or threatened harm, and without being required to furnish a bond or other security.
Source: Item 9 — **FRANCHISEE'S OBLIGATIONS (FDD pages 39–40)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, Item 23 discusses post-term obligations. Specifically, it details the post-term covenant not to compete, which outlines restrictions on activities a franchisee can engage in after the franchise agreement expires, is transferred, or is terminated.
This section of Item 23 states that for two years after leaving the My Salon Suite system, the franchisee cannot be involved with any business that competes with My Salon Suite in franchising or licensing, or establishing joint ventures for salon studio spaces. They also cannot own, maintain, engage in, or be employed by any other competing business within the location of the franchised business, the franchisee's territory, or within a 20-mile radius of the perimeter of the franchisee's territory or any other protected territory licensed by My Salon Suite. Additionally, the franchisee is prohibited from contacting My Salon Suite's vendors for any competitive business purpose.
My Salon Suite includes an "Irreparable Injury" clause, stating that any breach of the agreement would cause irreparable harm to the franchisor and that the franchisor would be entitled to a temporary and/or permanent injunction, without needing to show actual or threatened harm or furnish a bond. This highlights the importance My Salon Suite places on protecting its business interests and confidential information even after the franchise relationship ends.