factual

How is occupancy calculated for My Salon Suite franchises, and what is the basis for the occupancy shown?

My_Salon_Suite Franchise · 2025 FDD

Answer from 2025 FDD Document

Notes to the Tables:

Occupancy is calculated by dividing the number of suites occupied by the total number of available suites.

Occupancy shown is based on reported occupancy as of December 31, 2024.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 78–83)

What This Means (2025 FDD)

According to My Salon Suite's 2025 Franchise Disclosure Document, occupancy is calculated by dividing the number of suites occupied by the total number of available suites. The occupancy figures presented are based on the occupancy reported as of December 31, 2024. These figures are part of the financial performance representation provided in the FDD.

The financial performance representations include data reported by franchisees, and My Salon Suite has relied solely on this information. While My Salon Suite states they have no reason to believe franchisees would misstate their information, the reports have not been audited, and the franchisor has not independently verified the numbers. This means that the occupancy rates, while informative, should be considered estimates based on franchisee-reported data.

It's important to note that the FDD includes average occupancy data for different maturity levels of My Salon Suite locations. For example, the average occupancy for locations open for 12+ months was 86.8% for franchised businesses and 89.7% for company-owned locations, resulting in a total average occupancy of 87.3%. For locations open 24+ months, the average occupancy was 88.4% for franchised businesses and 88.7% for company-owned locations, with a total average of 88.5%. These figures provide a sense of how occupancy can change as a location matures.

Prospective franchisees should be aware that these occupancy rates are averages and individual results may vary. Factors such as geographic location, competition, and management quality can affect occupancy. The FDD urges potential franchisees to consult with financial, business, and legal advisors to conduct their own analysis of the data provided.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.