What is the nondisparagement clause in the My Salon Suite Waiver and Release of Claims?

According to the 2025 My Salon Suite Franchise Disclosure Document, the nondisparagement clause within the Waiver and Release of Claims states that the Releasor (which includes the franchisee and any individual holding an ownership interest in the franchisee) agrees not to make any false representations of facts. They also agree not to defame, disparage, discredit, or deprecate any of the Released Parties (which includes My Salon Suite Franchising, LLC, its affiliates, and related individuals). Furthermore, the Releasor must not communicate with any person or entity in a manner intending to damage any of the Released Parties, their business, or their reputation.

This clause is included in a broader release that the franchisee (Releasor) must agree to as a condition of My Salon Suite's consent to a transfer of the Franchise Agreement or an ownership interest in the franchisee. This release covers all claims, liabilities, damages, and actions related to the Franchised Business, the Franchise Agreement, and the offer and sale of the franchise.

For a prospective My Salon Suite franchisee, this means that upon transferring their franchise or an ownership interest, they must agree to refrain from making any negative or damaging statements about My Salon Suite, its related parties, or its business. Failure to comply with this clause could potentially lead to legal repercussions if My Salon Suite believes the franchisee has violated the terms of the nondisparagement agreement. Franchisees should seek legal counsel to fully understand the implications of this clause before signing the release.

Nondisparagement clauses are common in franchise agreements and releases to protect the brand's reputation. However, franchisees should carefully review the scope and limitations of such clauses to ensure they do not unduly restrict their ability to express legitimate concerns or opinions.