What is an 'Option Period' in the context of developing additional My Salon Suite franchised businesses?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor hereby grants you the right to open and operate the Initial Franchised Business pursuant to the terms of the Initial Franchise Agreement, as well as the right to open the Additional Franchised Businesses within the time periods prescribed herein (each, an "Option Period"), solely within the geographic area described in Attachment "A" attached hereto and made part hereof (the "Development Area"). You will open each Franchised Business pursuant to Franchisor's then-current form of franchise agreement for Franchised Businesses, all subject to the terms, the terms and conditions of this Agreement. Except as otherwise provided, so long as you are following the terms of this Agreement and each Franchise Agreement, Franchisor shall not establish, nor authorize anyone other than you to establish a My Salon Suite Business in the Development Area during the term of this Agreement. Notwithstanding the above, Franchisor or any person or entity authorized by Franchisor may, at any time, use the Proprietary Marks to advertise or promote the System or fulfill customer orders in the Development Area and Franchisor otherwise reserves the rights described in Section 2.E. of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to the 2025 My Salon Suite Franchise Disclosure Document, an "Option Period" refers to the time periods prescribed in the Development Agreement during which a franchisee has the right to open Additional Franchised Businesses within a specific geographic area, known as the "Development Area." My Salon Suite grants franchisees the right to open and operate an initial franchised business, as well as the right to open additional franchised businesses within these defined option periods.
The Development Agreement specifies that as long as the franchisee adheres to the terms of the agreement and each Franchise Agreement, My Salon Suite will not establish or authorize anyone else to establish a My Salon Suite business in the Development Area during the term of the agreement. However, My Salon Suite retains the right to use its Proprietary Marks to advertise, promote the system, and fulfill customer orders within the Development Area.
Failure to adhere to the Development Schedule, including executing each Additional Franchise Agreement within the prescribed timeframe, constitutes a material breach of the agreement. In such cases, My Salon Suite may terminate the agreement, resulting in the termination of any remaining option rights to open additional franchised businesses and the loss of territorial protection in the Development Area, without any refund of the Development Fee. The agreement automatically terminates once the franchisee opens the last Additional Franchised Business granted under the agreement.