What are the minimum insurance coverage requirements for a My Salon Suite franchise?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
s, vehicular registrations, legal, and accounting expenses for your start-up period.
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- Operating Supplies. You will need to purchase an initial inventory of cleaning supplies and other operating supplies.
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- Insurance. You must obtain, before beginning construction and maintain throughout the term of the Franchise Agreement, comprehensive general liability with primary and excess limits of not less than $2,000,000, motor vehicle liability with primary and excess limits of not less than $1,000,000, and professional liability insurance with primary and excess limits of not less than $1,000,000 to $2,000,000. The amounts shown reflect deposits and premiums payable for up to the first 3-month period. Premiums may vary based
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 29–35)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, franchisees must secure and maintain specific insurance coverage throughout the term of their Franchise Agreement. This includes comprehensive general liability insurance with primary and excess limits of at least $2,000,000. Additionally, franchisees need motor vehicle liability insurance with primary and excess limits of no less than $1,000,000. Furthermore, professional liability insurance is required, with primary and excess limits ranging from $1,000,000 to $2,000,000.
The FDD indicates that the listed amounts in Item 7 reflect deposits and premiums payable for up to the first three months. However, the actual premiums may fluctuate based on factors such as the insurer, the location of the premises, and local laws. Given these variables, My Salon Suite advises prospective franchisees to consult with their insurance agent to determine the appropriate coverage amounts for their specific business operation.
Understanding these insurance requirements is crucial for potential My Salon Suite franchisees as it directly impacts their initial investment and ongoing operational costs. Failing to meet these minimum coverage levels could result in a breach of the Franchise Agreement. Therefore, it is essential to factor in these insurance expenses when evaluating the financial feasibility of a My Salon Suite franchise.