What is the procedure for My Salon Suite franchisees to report monthly royalty and occupancy?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
cluded in the Disclosure Document. Financial information that differs from that included in Item 19 may only be given if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under circumstances.
The figures below represent the median and average occupancy and net profit reported in accordance with the typical monthly royalty and occupancy reporting procedure for 2024 by My Salon Suite franchise locations that satisfied the Reporting Criteria. Written substantiation for the financial performance representation will be made available to prospective franchisees on reasonable request.
The following chart includes information regarding the total number of My Salon Suite franchise locations in the United States that met or exceeded all of the following criteria as of December 31, 2024 ("Reporting Criteria"): (a) operated in the United States under a Franchise Agreement; (b) had been open and continuously operating for at least 12 full months as of December 31, 2024; (c) is at least 3,000 square feet; (d) submitted all required reports under the Franchise Agreement during 2024; and (e) was not under contract for purchase at any time during 2024.
As of December 31, 2024, there were 303 My Salon Suite franchised locations open and operating in the United States under a Franchise Agreement ("Franchise Group").
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 78–83)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the financial performance representations are based on the typical monthly royalty and occupancy reporting procedure. The document indicates that the franchisor prepares median and average information from records and reports submitted by franchisees. To be included in the reporting group for 2024, My Salon Suite franchise locations must have submitted all required reports under the Franchise Agreement during 2024.
My Salon Suite relies solely on the information reported by franchisees and has not independently verified the numbers. While they do not believe franchisees would misstate their information, the reports are unaudited. This means that the accuracy of the financial data depends on the franchisees' reporting practices.
For a prospective franchisee, this highlights the importance of maintaining accurate records and submitting timely reports to My Salon Suite. The financial performance data presented in Item 19 is based on these reports, so understanding the reporting requirements is crucial for both compliance and for benchmarking your salon's performance against other locations. A prospective franchisee should ask My Salon Suite for details on the specific reporting procedures and requirements.