What are the penalties for late payments and interest charges to My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
ated bank account for the difference; or (ii) that the actual amount of the fee due was less than the amount of the EFT, then Franchisor shall credit the excess amount to the payment of Franchisee's future obligations.
- (3) Right to Modify Payment Interval or Method. Franchisor reservesthe right to modify its method or interval for collecting any fees Franchisee must pay under this Franchise Agreement upon notice to Franchisee, and Franchisor may provide such notice via the Manual or any other manner that Franchisor deems appropriate.
- G. Late Payments and Interest. Any amounts due to the Franchisor under this Franchise Agreement, including without limitation, Royalty Fees and Fund Contributions and amounts due for purchases made by Franchisee from Franchisor or its Affiliates, that are not received by Franchisor (or, if appropriate, its Affiliate) by the due date for said payment will bear interest until it is paid in full at the lesser of the rate of one and one half percent (1.5%) per month, or the maximum rate permitted by law. If any check or EFT payment is not successful due to insufficient funds, stop payment, or any similar event, Franchisee shall pay Franchisor One Hundred Dollars ($100) per occurrence. In addition, if Franchisee fails to remit to Franchisor any Royalty Fee payment when due as provided in Section 3.B, any Fund Contribution when due as provided in Section 3.C, or Technology Fee when due as provided in 3.D., Franchisor has the right, in addition to any other remedy available, to charge Franchisee a late fee of fifty dollars ($50) for each day such Royalty Fee payment or Fund Contribution is late. Franchisee must also pay Franchisor for all costs incurred by Franchisor in the collection of any unpaid and outstanding amounts due Franchisor (or its Affiliate), including without limitation, reasonable accounting, and legal fees. The foregoing remedy shall be in addition to any other remedies the Franchisor may possess, as permitted by law. Franchisee acknowledges that this paragraph shall not constitute agreement by the Franchisor to accept such payments after they are due or a commitment by the Franchisor to extend credit to, or otherwise finance Franchisee's operation of Franchised Business. Further, Franchisee acknowledges that its failure to pay all amounts when due will constitute grounds for termination of this Franchise Agreement if non-payment is not timely cured as set forth in this Franchise Agreement.
- H. Late Fee for Submission of Late Report. If Franchisee fails to submit to Franchisor any required reports when due, including, without limitation, Gross Revenue reports required under Section 3.3 or financialstatements required under Section 11.B., Franchisor has the right, in addition to any other remedy available, to charge Franchisee (i) One Hundred Dollars ($100) per occurrence and (ii) a late fee of Fifty Dollars ($50) for each day such report is late, reduced, if necessary, to the extent such payment exceeds the amount permitted by applicable law. Franchisor may debit Franchisee's bank account for these amounts.
- I. Non-Compliance Fee.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, there are several penalties and interest charges associated with late payments. Any amounts due to My Salon Suite, including Royalty Fees, Fund Contributions, and amounts due for purchases from My Salon Suite or its Affiliates, that are not received by the due date will bear interest. This interest is calculated at the lesser of 1.5% per month or the maximum rate permitted by law.
If a check or EFT payment is unsuccessful due to insufficient funds or a stop payment, the franchisee will pay My Salon Suite $100 per occurrence. Additionally, if a franchisee fails to remit Royalty Fee payments, Fund Contributions, or Technology Fees when due, My Salon Suite can charge a late fee of $50 for each day the payment is late. The franchisee is also responsible for covering all costs incurred by My Salon Suite in the collection of any unpaid amounts, including reasonable accounting and legal fees.
My Salon Suite also has the right to charge a non-compliance fee if a franchisee defaults on any provision of the Franchise Agreement and fails to cure the default after notice. This non-compliance fee is 2.5% of the franchisee's Gross Revenues, with 2% payable to My Salon Suite and 0.5% payable to the Brand Building Fund. This fee is in addition to any other applicable fees or penalties. Furthermore, if a franchisee fails to submit required reports when due, including Gross Revenue reports or financial statements, My Salon Suite can charge $100 per occurrence and a late fee of $50 for each day the report is late.
It's important to note that My Salon Suite has the discretion to apply any payments made by the franchisee to any past due indebtedness, including payments due under the Franchise Agreement, amounts due for purchases, interest, or any other debt. The failure to pay all amounts when due can also constitute grounds for termination of the Franchise Agreement if the non-payment is not timely cured.