What is the late fee for submitting a late report 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, franchisees who fail to submit required reports on time, including Gross Revenue reports or financial statements, will incur specific penalties. My Salon Suite has the right to charge a $100 fee per occurrence for the late report. In addition to the initial fee, there is also a late fee of $50 for each day the report remains unsubmitted. However, the total amount of these fees will be reduced if it exceeds the maximum amount permitted by applicable law. My Salon Suite also retains the right to debit the franchisee's bank account to cover these fees.
This policy underscores the importance of timely and accurate reporting for My Salon Suite franchisees. The combined initial fee and daily late fee can quickly add up, creating a financial burden for franchisees who are not diligent in meeting their reporting obligations. Franchisees should establish internal controls and processes to ensure that all required reports are prepared and submitted on time to avoid these penalties.
It's important to note that failure to pay amounts when due, including these late fees, can constitute grounds for termination of the Franchise Agreement if the non-payment is not cured in a timely manner. This highlights the seriousness with which My Salon Suite views compliance with its reporting requirements and payment obligations. Franchisees should prioritize these obligations to maintain a positive relationship with the franchisor and avoid potential termination of their franchise agreement.