When is the project management fee due for a My Salon Suite franchise?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
review these figures carefully with a business advisor before making any decision to purchase the Franchise Business.
ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT - CONVERSION LOCATION
| Type of | Amo | ount | Method of | | To Whom | |-----------------------------------------------|----------|----------|------------------------------------|----------------------------------------------------------|-------------------------------------| | Expenditure | Low | High | Payment | When Due | Payment is to be Paid | | Initial Franchise Fee (1) | $50,000 | $50,000 | Lump sum | Upon signing of Franchise Agreement | Franchisor | | Travel and Living Expenses | $1,000 | $3,000 | As incurred | As incurred | Airlines, Hotels, Restaurants, etc. | | Rent or Real | $0 | $0 | As determined by lessor | Prior to opening | Lessor | | Estate (2) | | | | | | | Improvements/ | $12,500 | $50,000 | As incurred | Prior to opening | Vendors | | Conversions (3) | | | | | | | Furniture and Fixtures | $12,500 | $50,000 | As determined by vendors | Prior to opening or as arranged with vendors | Vendors | | Signage | $4,960 | $23,230 | As determined by vendors | Prior to opening or as arranged with vendors | Vendors | | Miscellaneous | $5,000 | $9,000 | As incurred | Prior to opening | Vendors, | | Opening Costs (4) | | | | | Utilities, etc. | | Operating | $0 | $0 | As incurred | Prior to opening | Approved Vendors | | Supplies (5) | | | | | | | Advertising/ Marketing (3 Months) | $15,000 | $20,000 | As incurred | Prior to opening | Mailings – Media | | Insurance (Annual) (6) | $1,400 | $4,000 | As determined by insurance company | Prior to opening or as arranged by vendor | Insurance Company/Agent | | Additional Funds – 3 Months (7) | $10,000 | $20,000 | As incurred | As incurred | Various Third Parties | | Design Standards | $1,500 | $2,500 | Lump sum | Prior to opening, within 5 | Franchisor | | Fee (8) | | | | | | | Type of | Amo | ount | Method of | | To Whom | | Expenditure (1) | Low | High | Payment | When Due days of invoice | Payment is to be Paid | | Project | $0 | $0 | Lump sum | Within 30 days of signing the lease | Franchisor | | Management Fee (9) | | | | | | | TOTAL ESTIMATED INITIAL INVESTMENT(10) | $113,860 | $231,730 | | | | All amounts that you pay to us are nonrefundable. Third party lessors and suppliers will decide if payments to them are refundable. Neither we nor any of our affiliates offer any financing for any of your initial investment.
Notes:
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- Initial Franchise Fee. You will pay an Initial Franchise Fee of $50,000, and as discount of 50%, if you are a veteran of the U.S.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 29–35)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the project management fee is due within 30 days of signing the lease. For a new location, the project management fee ranges from $5,000 to $5,000 and is paid as a lump sum to the franchisor. For a conversion location, the project management fee is between $0 and $0 and is paid as a lump sum to the franchisor.
This fee is a one-time expense that franchisees must budget for when opening their My Salon Suite location. It is important to note that this fee is in addition to other initial investment costs, such as the initial franchise fee, rent, improvements/conversions, furniture, signage, and operating supplies. Franchisees should carefully review the payment terms and ensure they have sufficient funds available to cover this expense when it becomes due.
Understanding the timing of this payment is crucial for managing cash flow during the initial setup phase. Failing to pay on time could potentially lead to delays in the project or even a breach of the franchise agreement. Therefore, prospective franchisees should clarify any uncertainties regarding the project management fee with My Salon Suite before signing the franchise agreement.