What post-termination provisions must a My Salon Suite franchisee and their family comply with during a transfer?
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 the 2025 My Salon Suite Franchise Disclosure Document, both the franchisee and related parties (Covenantor) are subject to a post-term covenant not to compete. This covenant is in place to protect My Salon Suite's confidential information, goodwill, and unique system qualities. For a continuous period of two years, the Covenantor is restricted from engaging in activities that compete with My Salon Suite.
The restrictions include involvement in franchising or licensing activities related to salon studio spaces or services similar to those offered by My Salon Suite. The Covenantor is also prohibited from owning, maintaining, or being involved with any other competing business as an officer, director, executive, or principal. These restrictions apply to the location of the franchised business, the franchisee's territory, and within a 20-mile radius of the franchisee's territory or any other protected territory licensed by My Salon Suite. Additionally, the Covenantor cannot contact any of SMF's (presumably Salon My Franchise) vendors for competitive business purposes.
The FDD also states that any breach of this agreement would cause irreparable injury to My Salon Suite, entitling the company to injunctive relief in addition to other legal remedies. This means that My Salon Suite can seek a court order to prevent the franchisee from violating the non-compete terms, without having to prove actual harm or post a bond. This provision underscores the importance My Salon Suite places on protecting its business model and market position.