How is the Protected Territory for a My Salon Suite franchise determined?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Approved Location.
Franchisee may operate the Franchised Business only at the Approved Location identified in Attachment A ("Data Sheet"). Franchisee may not relocate the Franchised Business without Franchisor's prior written consent, and Franchisee must reimburse Franchisor for Franchisor's cost in reviewing, evaluating, approving, and assisting in any relocation as set forth in Section 7 of this Franchise Agreement. In the event Franchisee has not secured an Approved Location prior to the Effective Date, then the parties will enter into Franchisor's prescribed form of site selection addendum attached to this Franchise Agreement as Attachment B ("Site Selection Addendum"), and Franchisee must locate and secure an Approved Location within the "Site Selection Area" defined therein. For the avoidance of doubt, the Site Selection Area is non-exclusive and does not provide Franchisee with any territorial protection. Franchisee is not entitled to any territorial protection until an Approved Location has been approved by Franchisor and a Protected Territory (defined below) is granted. If Franchisee is seeking to locate the Approved Location in an area where a Franchised Business exists, Franchisee's proposed location may be subject to a right of first refusal to the existing franchisee.
- **C.
Protected Territory**.
Except as otherwise provided in this Franchise Agreement and for so long as Franchisee is not in default of this Franchise Agreement, Franchisor will not establish and operate, nor license any other third party the right to establish and operate, a Franchised Business within the standard geographical area ("Protected Territory") during the term of this Franchise Agreement.
You will receive a Protected Territory that is determined based on the physical street address of your Franchised Business.
The boundaries of your Protected Territory will be described in your Franchise Agreement and will be based on the location you have been approved to operate.
Your rights to operate within the Protected Territory are tied to this specific address.
If the location of your Franchise Business changes, your Territory may be redefined accordingly, subject to our written approval and execution of an amendment to your Franchise Agreement.
Unless the Approved Location is: (i) in a densely populated area or sparsely populated area ("Nonstandard Territory"); and (ii) Franchisee has signed a territory change addendum; the Protected Territory will be a radius of two (2) miles from the Approved Location that may overlap with another Franchisee's Protected Territory.
Franchisor reserves the right to modify the Nonstandard Territory.
A territory change addendum ("Territory Change Addendum") will be created at the sole discretion of the Franchisor based on the location and demographicssurrounding Franchisee's Approved Location.
If Franchisee has chosen an Approved Location that qualifies for a Nonstandard Territory, Franchisee must sign the Territory Change Addendum as a condition to receive approval for the proposed Approved Location.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the protected territory is based on the physical street address of the franchised business. The boundaries of the protected territory will be outlined in the Franchise Agreement and are determined by the approved location where the franchisee is authorized to operate. The franchisee's rights to operate within the protected territory are linked to this specific address.
Unless the approved location is in a densely or sparsely populated area, which is considered a "Nonstandard Territory," the protected territory will typically be a radius of two miles from the approved location. This territory may overlap with another franchisee's protected territory. My Salon Suite retains the right to modify a Nonstandard Territory, and a Territory Change Addendum will be created at the sole discretion of the franchisor based on the location and demographics surrounding the franchisee's approved location. If the franchisee chooses a location that qualifies for a Nonstandard Territory, they must sign the Territory Change Addendum to receive approval for the proposed location.
If a franchisee wishes to relocate their My Salon Suite business, the territory may be redefined, subject to written approval from My Salon Suite and the execution of an amendment to the Franchise Agreement. It's important to note that until an approved location is secured and a protected territory is granted, the Site Selection Area, where the franchisee searches for a location, does not provide any territorial protection. Additionally, if a franchisee is seeking to locate in an area where an existing My Salon Suite franchise operates, the proposed location may be subject to a right of first refusal by the existing franchisee.