How often does My Salon Suite re-evaluate the minimum Brand Building Fund contribution?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | If you are a new Center or a Conversion Center you will pay 2.75% of Gross Revenues for the first 6 months. Beginning the 7 th month through the 12 th month you will pay 5.5% of Gross Revenues for . Beginning the 13th month after your Franchised Business opens through the end of the term of the Franchise Agreement, you will pay the greater of $1,000 or 5.5% of Gross Revenues. | On or before | The "Royalty Fee" is based on "Gross Revenues" during the previous month. The reduction in the Royalty Fee for the first 6 months is not applicable to the purchase of a Resale Center. |
| the 10th day of | |||
| each month | |||
| Brand Building Fund Contribution | Currently a minimum of $200 per month. We may increase this up to 2% of your monthly Gross Revenues. | Same as | This contribution will be used for a "Brand Building Fund" for our use in promoting and building our My S |
Source: Item 5 — Initial Fees (FDD pages 18–28)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the Brand Building Fund contribution is currently a minimum of $200 per month. My Salon Suite retains the right to increase this contribution up to a maximum of 2% of the franchisee's monthly Gross Revenues. The FDD does not specify how often My Salon Suite may re-evaluate or change the Brand Building Fund contribution, only that they may increase it up to the specified percentage.
For a prospective My Salon Suite franchisee, this means that while the initial monthly contribution is set at a minimum of $200, this amount is subject to change at the discretion of My Salon Suite. The franchisee needs to be prepared for potential increases in this mandatory contribution, up to a maximum of 2% of their Gross Revenues. This fund is used by My Salon Suite to promote and build the My Salon Suite franchise brand.
It is important for potential franchisees to understand the conditions under which My Salon Suite might increase the Brand Building Fund contribution and how frequently such evaluations occur. While the FDD does not explicitly state the re-evaluation frequency, it is crucial for prospective franchisees to discuss this point with the franchisor to gain a clearer understanding of the potential financial implications and budgeting considerations. Knowing the historical frequency of adjustments to the Brand Building Fund can help in forecasting expenses and assessing the overall financial viability of the franchise.