To whom is the non-compliance fee paid when charged by My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is in default of any provision of this Franchise Agreement and Franchisee fails to timely cure the default following Franchisor's notice to Franchisee, Franchisor may, at its option, elect to charge a non-compliance fee of two and one half percent (2.5%) of Franchisee's Gross Revenues, two percent (2%) of which payable to Franchisor in the same manner as the Royalty Fee and one half percent (0.5%) payable to the Brand Building Fund in the same manner as the Fund Contribution, until Franchisee cures the default.
The noncompliance fee shall be in addition to any other applicable fees or penalties set forth in this Franchise Agreement.
Franchisor will provide written notice to Franchisee before charging the non-compliance fee.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the non-compliance fee is divided between the franchisor and the Brand Building Fund. If a franchisee fails to correct a default after receiving notice from My Salon Suite, the franchisor may charge a non-compliance fee of 2.5% of the franchisee's Gross Revenues.
Of this 2.5%, two percent (2%) is payable to My Salon Suite in the same manner as the Royalty Fee. The remaining one-half percent (0.5%) is payable to the Brand Building Fund, also in the same manner as the Fund Contribution.
The non-compliance fee is in addition to any other applicable fees or penalties outlined in the Franchise Agreement. My Salon Suite will provide written notice to the franchisee before charging this non-compliance fee.