What monetary obligations must a My Salon Suite franchisee satisfy before a transfer can be approved?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
7.4 You have timely paid any fees or other monies due Franchisor as and when due under the terms of the Initial Franchise Agreement or any other agreement with Franchisor; and
(13) The purchase price and terms of the proposed transfer are not so burdensome to the prospective transferee as to impair or materially threaten its future operation of the Franchised Business and performance under its franchise agreement;
(14) (a) Franchisee has corrected any existing deficiencies of the Franchised Business of which Franchisor has notified Franchisee on a punch list or in other communications, and/or (b) the transferee agrees (if the transfer is of this Agreement) to upgrade, remodel, expand and/or refurbish the Franchised Business and to add or replace services, equipment, and/or other items required to operate the Franchised Business, in accordance with Franchisor's then current requirements and specifications for My Salon Suite Franchised Businesses within the time period Franchisor specifies following the effective date of the transfer;
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to the 2025 My Salon Suite Franchise Disclosure Document, a franchisee must meet certain financial obligations before a transfer of their franchise can be approved. Specifically, the franchisee must have timely paid all fees or other monies due to My Salon Suite as and when due under the terms of the Initial Franchise Agreement or any other agreement with My Salon Suite. This indicates that all outstanding debts to the franchisor must be settled.
This requirement ensures that My Salon Suite maintains its revenue stream and that the franchisee is in good financial standing before transferring the business to someone else. It protects My Salon Suite from potential losses and ensures that the new franchisee is not burdened with the previous owner's financial liabilities.
In addition to settling outstanding debts, the franchisee must also ensure that the purchase price and terms of the proposed transfer are not so burdensome to the prospective transferee as to impair or materially threaten its future operation of the Franchised Business and performance under its franchise agreement. This suggests that the financial terms of the transfer itself must be reasonable and not jeopardize the new franchisee's ability to run the business successfully. This protects both the brand and the new franchisee from potential financial distress.
Furthermore, the franchisee must correct any existing deficiencies of the Franchised Business of which My Salon Suite has notified the franchisee. If the transfer is of the Franchise Agreement, the transferee must agree to upgrade, remodel, expand, and/or refurbish the Franchised Business and to add or replace services, equipment, and/or other items required to operate the Franchised Business, in accordance with My Salon Suite's then current requirements and specifications for My Salon Suite Franchised Businesses within the time period My Salon Suite specifies following the effective date of the transfer. This ensures that the business is up to My Salon Suite's standards before the transfer is completed.