Is My Salon Suite obligated to share any proceeds from its reserved activities with its franchisees?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement does not grant you any right to engage in any of the activities set forth in the preceding paragraph, or to share in any of the proceeds received by us or our affiliates or any third party from these activities, unless we otherwise agree in writing.
Source: Item 12 — Territory (FDD pages 53–55)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, franchisees are not entitled to a share of the proceeds from activities that My Salon Suite reserves for itself. My Salon Suite retains specific rights, including establishing franchises outside a franchisee's protected territory, marketing similar products under different trademarks, using alternative distribution channels, and engaging in business activities not expressly prohibited in the Franchise Agreement.
The Franchise Agreement explicitly states that franchisees have no right to participate in these reserved activities or to receive any portion of the income generated by My Salon Suite or its affiliates from these activities. The only exception to this is if My Salon Suite provides written consent to share proceeds.
This means that a My Salon Suite franchisee's revenue is primarily limited to the operation of their own franchised business within their protected territory. They cannot expect to benefit financially from any of My Salon Suite's other ventures, even if those ventures operate within or affect the franchisee's territory. This is a common practice in franchising, where franchisors often retain control over certain aspects of the business and the associated revenue streams.