How often is the Brand Building Fund contribution for a My Salon Suite franchise due?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
e twelfth (12th) month that the Franchise Business is open, Franchisee shall, on or before the tenth (10th) day of each month pay to Franchisor a monthly Royalty Fee equal to five and one-half percent (5.5%) of Gross Revenues. Beginning the thirteenth (13th) month following the opening of the Franchised Business through the end of the Term of this Franchise Agreement, Franchisee shall, on or before the tenth (10th) day of each month, pay to Franchisor the greater of One Thousand Dollars ($1,000) or five and one-half percent (5.5%) of Gross Revenues." s.
- C. Brand Building Fund Contribution. Franchisor has established a System-wide marketing and brand building fund (the "Brand Building Fund") asset forth more fully in Section 9 of this Franchise Agreement. Franchisor requires Franchisee to currently contribute a minimum of Two Hundred Dollars ($200) per month to the Brand Building Fund but reserves the right to increase the required contribution up to two percent (2%) of Gross Revenues (the "Fund Contribution"), which will be due and payable monthly at the same time and in the same manner as the Royalty Fee.
- D. Technology Fee.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, franchisees are required to make contributions to the Brand Building Fund on a monthly basis. The current minimum contribution is $200 per month. However, My Salon Suite retains the right to increase this contribution up to 2% of the franchisee's Gross Revenues.
The Brand Building Fund contributions are due at the same time and in the same manner as the Royalty Fee. This means franchisees must ensure timely payments to avoid potential penalties or breaches of the franchise agreement. Franchisees may also be required to submit a Gross Revenues Report on or before the 5th of each month, detailing the previous month's Gross Revenues, calculated Royalty Fee, and Fund Contribution, along with any other information My Salon Suite may require.
These funds are intended to maximize public recognition and acceptance of the My Salon Suite brand and enhance the collective success of all franchised businesses. While franchisees contribute to the fund, My Salon Suite has sole discretion over the advertising programs and is not obligated to ensure that expenditures are equivalent or proportionate to each franchisee's contribution. A statement of the Brand Building Fund's operations will be prepared annually and made available to franchisees upon written request.