From which personnel of a My Salon Suite franchise are non-compete agreements required?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
Post-Term Covenant Not to Compete.
In further consideration for the disclosure to Covenantor of the Confidential Information and to protect the goodwill and unique qualities of the My Salon Suite system, Covenantor agrees that for a continuous uninterrupted period of two (2) years that Covenantor will not, directly or indirectly, for themselves, or through, on behalf of or in conjunction with any person(s) or Entity:
- (i) Franchising or Licensing Activities*.* Be involved with any business competing in whole or in part with SMF in granting franchises or licensing, or establishing joint ventures, for one or more businesses that engage in the rental of salon studio spaces or that offer or provide any of the other products/services that are offered by the Franchised Business;
- (ii) Other Competing Businesses*.* Own, maintain, engage in, have any interest in, or be employed as an officer, director, executive, or principal of any other Competing Business within the following areas: (i) at the location of the Franchised Business; (ii) within Franchisee's territory; (iii) within a radius of 20 miles of the perimeter of the Franchisee's territory granted hereunder; or (iv) within a radius of 20 miles of the perimeter of any other protected territory licensed by SMF to any third party or any Franchised Business that is in operation or under development, as of the date of expiration, transfer or termination of this Franchise Agreement through the date of Covenantor's involvement in the Competing Business; or
- (iii) Vendor Usage*.* Contact any of SMF's vendors for any competitive business purpose.
Irreparable Injury.
Covenantor agrees that in the event of a breach of this Agreement, Franchisee and SMF would be irreparably injured and would be without an adequate remedy at law. Therefore, in the event of such a breach or threatened breach, Franchisee and/or SMF shall be entitled, in addition to any other remedies which are made available to it at law or equity, to a temporary and/or permanent injunction, without the necessity of showing actual or threatened harm, and without being required to furnish a bond or other security.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the "Covenantor" is subject to a post-term covenant not to compete. The agreement specifies that in exchange for receiving confidential information and to protect the goodwill of the My Salon Suite system, the Covenantor agrees not to engage in activities that compete with SMF (presumably Salon My Franchise, the parent company) for a period of two years after the termination, transfer, or expiration of the Franchise Agreement.
The non-compete agreement restricts the Covenantor from involvement in franchising or licensing activities related to salon studio spaces, owning or being employed by competing businesses, and contacting SMF's vendors for competitive purposes. The restrictions apply to the location of the Franchised Business, the franchisee's territory, and areas within a 20-mile radius of the franchisee's territory or any other protected territory licensed by SMF.
The FDD indicates that a breach of the non-compete agreement would cause irreparable injury to the franchisee and SMF, entitling them to injunctive relief in addition to other legal remedies. The document does not explicitly define who the "Covenantor" is (i.e., franchisee, manager, employee), but it is likely the franchisee or a principal of the franchisee entity, as they are the ones directly entering into the Franchise Agreement and receiving confidential information. A prospective franchisee should clarify with My Salon Suite who specifically is required to sign the non-compete agreement.